Use following information to calculate Net Operating Profit After Tax (NOPAT) fo

Question

Use following information to calculate Net Operating Profit After Tax (NOPAT) for Walmart for 2011:

$16,487

$17,222

$29,435

$13,987

$12,976

A.

$16,487

B.

$17,222

C.

$29,435

D.

$13,987

E.

$12,976

WALMART INCOME STATEMENT 2010 TOTAL REVENUES Operating Expenses OPERATING PROFIT (EBIT) Non-operating Expneses (Net Interest Expense) TAXABLE PROFIT (EBT) 2011 421,849 396,307 25,542 2,004 23,538 7,579 15,959 2011 NET INCOME FROM CONTINUED OPERATIONS BALANCE SHEET 2010 OPERATING ASSETS NON-OPERATING ASSETS TOTAL ASSETS 162,360 173,137 7,526 170,407180,663 AVERAGIE 167,749 7,787 175,535 8,047 OPERATING LIAB NON-OPERATING LIAB SH EQUITY TOTAL LIAB EQUITY 59,097 50,319 1,247 170,407180,663 56,040 41,719 72,648 57,569 46,019 71,948 175,535

Explanation / Answer

Tax rate = Tax/ EBT

= 7579/23538 i.e 32.199%

NOPAT = EBIT ( 1-Tax)

= 25542(1-0.32199) i.e 17222

= 25542*0.67801 i.e

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