All categories

3 years ago

The measurement of earnings concept that consists of a company’s profit from operations after taxed are subtracted is ________.

Business

1 answer:

babunello [35]3 years ago

3 0

Answer:

Net Operating Profit After Taxes or NOPAT

Explanation:

NOPAT is calculated by substracting the tax expense from the revenue that the company obtains exclusively from its operating activities. This means that NOPAT does not include income from non operating activities like small investments or one time sales of capital goods.

NOPAT is a very important indicator in corporate finance, often used by analysts to gauge a company's true level of profitability. It is also an important element in the calculation of another important indicator, Economic Value Added or EVA.

You might be interested in

A company purchases a machine for $12,000. The estimated residual value is $4,000. The machine has a useful life of 5 years, and

tatuchka [14]

Answer:

$2,400

Explanation:

The computation of the depreciation expense under the activity-based depreciation method is shown below:

= (Original cost - residual value) ÷ (estimated production units)

= ($12,000 - $4,000) ÷ (20,000 units)

= ($8,000) ÷ (20,000 units)

= $0.4 per unit

Now for the first year, it would be

= Production units in first year × depreciation per unit

= 6,000 units × $0.4

= $2,400

8 0

3 years ago

Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety

Paha777 [63]

Answer:

The correct answer is letter "E": Derived demand.

Explanation:

Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.

6 0

3 years ago

New orders are coming in quickly for SmartTech, and management is confident that new contracts will take them through the next c

9966 [12]

Answer:

D). Technological advancement

Explanation:

5 0

3 years ago

5. The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $345.8 billion in 2015.

ikadub [295]

Answer & Explanation:

a. MPC = 0.50; Change in consumption spending = $345.8 billion

According to multiplier formula,

Change in real GDP/ Change in consumption spending = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in consumption spending*2 = (345.8)*2 = $691.6 billion

Change in GDP = $691.6 billion

b. Change in investment = -$100

According to multiplier formula,

Change in real GDP/ Change in investment = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in investment*2 = (-100)*2 = -200

So, total change in GDP = 691.6 - 200 = $491.6 billion

Change in real GDP = $491.6 billion

c. Percentage change in real GDP = (Change in Real GDP/GDP at the end of 2014)*100 = (491.6/15,982.3)*100 = 3.08%

7 0

3 years ago

If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the accounta. Common Stock will be credited for

Ulleksa [173]

Answer:

Paid-in Capital in Excess of Par Value will be credited for $120,000.

Explanation:

The journal entry for the issue of shares is shown below:

Cash A/c Dr $140,000

To common stock (4,000 shares × $5) = $20,000

To Paid-in Capital in Excess of Par Value $120,000

(Being issue of shares recorded)

So, the cash account is debited whereas the common stock and paid-in capital should be credited

And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value

6 0

3 years ago