Net operating profit after tax (NOPAT) includes operating revenues less expenses such as: A. Cost of goods sold (COGS) B. Taxes on operating income C. Selling, general and administrative expenses (SG&A) D. After-tax earnings from investments and interest expenses E. All of the above F. A, B and C only

Question

Isai Arnold

Business

13 December, 05:32

Net operating profit after tax (NOPAT) includes operating revenues less expenses such as: A. Cost of goods sold (COGS) B. Taxes on operating income C. Selling, general and administrative expenses (SG&A) D. After-tax earnings from investments and interest expenses E. All of the above F. A, B and C only

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Answers (1)

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Maci Flores · Answer 1

Option F is correct.

Explanation:

Operating revenue

(-) Cost of goods sold (COGS)

Gross profit

(-) Selling, general and administrative expenses (SG&A)

Operating income

(-) Taxes on operating income

Net operating profit after tax (NOPAT)

Thus, as we can see from operating revenue we have deduced the items given in option A, B & C.