Problem 2. What if there are non-operating gains and losses?

Calculate NOPAT = (Net income + non-operating income loss non-operating income gain + interest expense + tax expense) x (1 tax rate)

Revenue $1,000,000

COGS $600,000

Depreciation $20,000

Salary expense $120,000

SG&A $60,000

Interest expense $18,000

Gain on sale of equipment $2,000

Tax Expense $46,000

Net Income $138,000