Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need information in the green cells with the Consolidated Statements of Earnings provided. Will upvote for correct answers and instruction on calculation and where you
Need information in the green cells with the Consolidated Statements of Earnings provided. Will upvote for correct answers and instruction on calculation and where you got information. NOPAT= Net operating profit after taxes NOPBT= Net operating profit before taxes. Thank you
Dec. 31. 2018 Net operating profit before tax (NOPBT) 2537 STRYKER CORPORATION Consolidated Statements Of Earnings $ millions Dec. 31, 2018 Net sales $ 13,601 Cost of sales 4,663 Gross profit 8,938 Research, development and engineering expenses 862 Dec. 31, 2017 $ 12,444 4,264 8,180 787 Nonoperating items (expense) before t; LESS Tax shield at 22% 181 40 Net nonoperating expense (NNE) 5,099 Selling, general and administrative expenses Recall charges, net of insurance proceeds Amortization of intangible assets Total operating expenses Operating income Nonoperating expense, net Earnings before income taxes Income tax expense (benefit) Net earnings 4,552 173 371 5,883 2,297 234 2,063 1,043 $ 1,020 23 417 6,401 2,537 181 2,356 (1,197) $ 3,553 Top down approach: NOPAT = NOPBT - Tax on operating profit Income taxes (1,197) PLUS Tax shield = Tax on operating profit NOPBT LESS Tax on operating profit NOPAT Bottom up approach: NOPAT = Net income + NNE Net income PLUS NNE NOPAT Dec. 31. 2018 Net operating profit before tax (NOPBT) 2537 STRYKER CORPORATION Consolidated Statements Of Earnings $ millions Dec. 31, 2018 Net sales $ 13,601 Cost of sales 4,663 Gross profit 8,938 Research, development and engineering expenses 862 Dec. 31, 2017 $ 12,444 4,264 8,180 787 Nonoperating items (expense) before t; LESS Tax shield at 22% 181 40 Net nonoperating expense (NNE) 5,099 Selling, general and administrative expenses Recall charges, net of insurance proceeds Amortization of intangible assets Total operating expenses Operating income Nonoperating expense, net Earnings before income taxes Income tax expense (benefit) Net earnings 4,552 173 371 5,883 2,297 234 2,063 1,043 $ 1,020 23 417 6,401 2,537 181 2,356 (1,197) $ 3,553 Top down approach: NOPAT = NOPBT - Tax on operating profit Income taxes (1,197) PLUS Tax shield = Tax on operating profit NOPBT LESS Tax on operating profit NOPAT Bottom up approach: NOPAT = Net income + NNE Net income PLUS NNE NOPATStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started