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3 years ago

EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?

Business

1 answer:

mezya [45]3 years ago

8 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales = $ 2,000.00

Costs = 1,400.00

Depreciation = 250.00

EBIT = $ 350.00

Interest expense = 70.00

EBT = $280.00

Taxes (25%) = 112.00

Net income = $168.00

Net operating profit after taxes (NOPAT):

= EBIT × (1 - tax rate)

= $350 × (1 - 25%)

= $350 × 0.75

= $262.50

Therefore, the net operating profit after taxes (NOPAT) is $262.5.

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Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) ha

Mekhanik [1.2K]

Answer:

See explanation section

Explanation:

Requirement A

Cash Debit $253,000

Sales revenue credit $253,000

Note: To record the sales on cash with no terms and conditions

Cost of goods sold debit $141,870

Merchandise inventory credit $141,870

Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory journals.

Requirement B

Customer refunds payable debit $1,600

Cash credit $1,600

Note: Campus Stop, Inc. refunded cash to the customer because of unsatisfactory merchandise.

Merchandise inventory debit $650

Estimated returns inventory credit $650

Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory returned journals.

Requirement C.

Accounts receivable debit $10,000

Sales revenue credit $10,000

Note: To record the sales on account with no discounting terms but has to receive the payment within 30 days.

Cost of goods sold debit $4,500

Merchandise inventory credit $4,500

Note: As the company uses a perpetual inventory system, the company records the cost of merchandise inventory journals.

Requirement D and E.

D. Cash Debit $5,000

Accounts receivable Credit $5,000

Note: Collected half of the balance owed by the customer in transaction c.

E. Cash debit $3,400

Merchandise inventory debit $1,600

Accounts receivable credit $5,000

Note: Receive the remaining payment from the customer by granting a discount assuming the buyer paid the remaining part earlier than expected.

5 0

3 years ago

The demand for automobiles is expected to decrease this year. Other things being equal, which of the following is the best forec

irga5000 [103]

Answer:

A decrease in both the market equilibrium price and the market equilibrium quantity of autos sold.

Explanation:

A fall in the demand for automobiles would shift the demand curve to the left.

As a result of the leftward shift, both equilibrium price and quantity would fall.

I hope my answer helps you

7 0

3 years ago

Module 2 Assignment By using 2-dimension graphs (in MS WORD) for PRICE and QUANTITY, demonstrate the effect that each of the fol

aksik [14]

Answer: The answer is provided below

Explanation:

a. An increase in the number of cars will lead to an increase in demand as more people will demand for gasoline. This will lead to a rightward shift of the demand curve from D1 to D2. The increase in demand will also lead to the rise in price of gasoline from P1 to P2.

b. When the economy moves into a recession, people will purchase less cars because of the recession, as the income level of the consumers will have fallen. Due to the decrease in the number of cars, the demand for gasoline also reduces. This is denoted by the leftward shift in the demand curve in the attached diagram from D1 to D2.

c. The increase in the price of car insurance, taxes, maintenance will also lead to a reduction in the demand for cars which will in turn, reduce the demand for gasoline. Thereby the demand curve shifts from from D1 to D2 leftward.

d. The expectations of substantial increase in the price of gasoline, will lead to a higher demand for gasoline in the present period because due to the expectation of a higher price, the consumers will go and buy more gasoline and keep for future use. As the demand for gasoline rises, this will lead to the demand curve for gasoline to shift rightward and also the price will increase from P1 to P2.

The diagram has also been attached.

7 0

4 years ago

After a year of mentoring, andrew is starting his own bakery. he has listened to all of his mentor's advice, especially about de

Maslowich

Sorry I don’t understand

7 0

3 years ago

Read 2 more answers

Americans' core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxur

Vlad1618 [11]

Answer: Option (C)

Explanation:

Sociological factors are referred to as or known as elements or factors of the society that tends to radiate negative and positive influence which cause a change in function, structure, elements, and orientation. Sociology tends to mostly study society in regards with its elements, structure, and their development which mostly includes numerous factors such as people and the population, ethnicity, age, gender, religion, view , culture, and etc.

8 0

4 years ago