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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
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
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