Computing NOPAT, NOPM and RNOA Selected information from the financial statements of GoPro, Inc. is provided below: ($ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities Assume a statutory tax rate of 35%. a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013. Round answers to the nearest whole number. 2014 $ 121,573 2013 $ 64,157 2014 2013 $1,392,450 $984,725 187,035 98,703 6,032 7,357 125,888 60,758 815,643 439,716 276,487 254,227 b. Compute GoPro's net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2014 2013 8.7% 6.5% c. Compute GoPro's return on net operating assets (RNOA) for 2014. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2014 33.6%

Computing NOPAT, NOPM and RNOA Selected information from the financial statements of GoPro, Inc. is provided below: ($ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities Assume a statutory tax rate of 35%. a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013. Round answers to the nearest whole number. 2014 $ 121,573 2013 $ 64,157 2014 2013 $1,392,450 $984,725 187,035 98,703 6,032 7,357 125,888 60,758 815,643 439,716 276,487 254,227 b. Compute GoPro's net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2014 2013 8.7% 6.5% c. Compute GoPro's return on net operating assets (RNOA) for 2014. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2014 33.6%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Orca Industries Below are the two most recent balance sheets and most recent income statement for…

A: Dear student as per guideline we can solve first three sub parts ROA 0.0684 ROCE 0.1521…

Q: Provide correct solution

A: Answer : LIFOFIFONet Income$14,700$21,000Calculation : LIFOFIFOSales$86,000$86,000Less : Cost of…

Q: The following comparative information is available for Larkspur, Inc. for 2022. LIFO FIFO Sales…

A: Net Income: It refers to the amount that a business earns from it's operational activities or day to…

Q: Computing NOPAT, NOPM and RNOA Selected information from the financial statements of GoPro, Inc. is…

A: Net operating profit margin indicates the manner in which the assets are utilized to generate…

Q: Income Statement Bullseye, Incorporated's 2018 income statement lists the following income and…

A: Earnings before interest and taxes: Earnings before interest, depreciation and taxes are the…

Q: Please provide correct solution

A: Step 1: Introduction to the Net IncomeNet income shows the ultimate profit made by the company from…

Q: Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation:…

A: Working capital helps to determine the liquidity position of the company, it helps to determine the…

Q: Freda's Florist reported the following before-tax income statement items for the year ended December…

A: Discontinued Operation -Discontinued operations are denoted on financial statements apart from…

Q: Income Statement Bullseye, Inc.'s 2018 income statement lists the following income and expenses:…

A: Earnings (or net income) are determined after a firm pays off its interests and taxes from the…

Q: Calculate the following ratios from the income statement and balance sheet all are required…

A: Equity Turnover: This metric measures how well a firm uses its shareholders' equity to create…

Q: You are given the following information about Sandhill Plumbing Company. Revenues in 2017 totaled $…

A: Income statement represents the net income or net loss calculated by deducting the expenses from the…

Q: Zoom Industries. The following balance sheets and income statements are for Zoom Industries., a…

A: "Since you posted multiple sub-part questions, we will answer the first three sub-parts for you as…

Q: Computing NOPAT, NOPM and RNOA Selected information from the financial statements of GoPro, Inc. is…

A: Net operating profit margin indicates the manner in which the assets are utilized to generate…

Q: Use the following information for Ingersoll, Inc., (assume the tax rate is 35 percent): 2015 2014…

A: Working Note#1:Computation of operating cash flow:Snapshot of cell reference:Snapshot of…

Q: Use the income statement for Microsoft Corporation to compute "NOPAT (net operating profit after…

A: Net Operating Profit After Tax NOPATIt is a measure of financial leverage and profitability of the…

Q: how did they get the Income Before Tax?

A: Income before tax: Income before tax represents the net earnings of the firm without taking into…

Q: For 2018, GLCE's ROA is Select one: a. 12.96% b. 5.99% c. 5.55% O d. 9.62%…

A: Return on Assets= Net Income / Total Assets

Q: LMNO Corporation was formed in 2011. It reported net income (loss) over the 2011 through 2017 tax…

A: A net operating loss (NOL) refers to a financial situation where a company's deductible expenses…

Q: Doris company has the following information for the year March 2021: selling, general and admin…

A: Operating income is computed to identify the amount of profit that an organisation earned after…

Q: You are given the following information about Sheridan Plumbing Company. Revenues in 2017 totaled $…

A: The income statement description seems to be a financial statement that typically illustrates a…

Q: Rowen, Inc. had pre-tax accounting income of $1,672,000 and a tax rate of 40% in 2015, its first…

A: The deferred tax asset is created when the taxes to be paid as per income tax are lower than the…

Q: Income Statement Bullseye, Incorporated's 2018 income statement lists the following income and…

Q: Prepare the cash flows from operating activities section of Concord's 2023 statement of cash flows…

A: The cashflow statement is a financial statement which shows the inflow and outflow of cash of the…

Q: Use the following tables to answer the question: LOGIC COMPANY Income Statement For years ended…

A: Given the following information:

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Computing NOPAT, NOPM and RNOA
Selected information from the financial statements of GoPro, Inc. is provided below:
($ thousands)
Revenue
Operating income
Net interest expense and other nonoperating expense
Net income
Operating assets
Operating liabilities
2014 $ 121,573
2013 $
64,157
Assume a statutory tax rate of 35%.
a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013.
Round answers to the nearest whole number.
2014
2013
2014
2013
$1,392,450 $984,725
b. Compute GoPro's net operating profit margin (NOPM) for each year.
Round answers to one decimal place. (Ex: 0.2345 = 23.5%)
8.7%
6.5 %
187,035 98,703
6,032
7,357
125,888 60,758
815,643 439,716
276,487 254,227
33.6%
c. Compute GoPro's return on net operating assets (RNOA) for 2014.
Round answers to one decimal place. (Ex: 0.2345 = 23.5%)
2014

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of Net Operating Profit after taxes (NOPAT)

VIEW

Step 3: Calculation of Net Operating profit margin (NOPM)

VIEW

Step 4: Calculation of return on net operating assets (RNOA) for 2014:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

For the FY 2016, Alpha Company had net sales of $950,000 and a net income of $65,000, paid income taxes of $30,000, and had before-tax interest expense of $15,000. Use this information to determine the: 1. Times Interest Earned Ratio. 2. Profit Margin.
Crane Ltd. reported the following for the fiscal year 2021: Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Gain on sale of land Profit before income tax Income tax expense Profit Additional information: 1. 2. CRANE LTD. Income Statement Year Ended September 30, 2021 3. 4. 5. 6. $ 109,000 34,000 (44,000) $583,000 338,000 245,000 99,000 146,000 36,500 $109,500 Accounts receivable decreased by $16,300 during the year. Inventory increased by $7,800 during the year. Prepaid expenses decreased by $5,800 during the year. Accounts payable to suppliers increased by $11,300 during the year. Accrued expenses payable increased by $5,300 during the year. Income tax payable decreased by $7,100 during the year.
Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to Equity Ratio. (Answer Format: 12.23%, if computed answer is 12.343% answer should be 12.34%, if computed answer is 12.347% answer should be 12.35%)
Following are income statements for Hossa Corporation for 2017 and 2016. Percentage of sales amounts are also shown for each operating expense item. Hossa’s income tax rate was 38% in 2016 and 40% in 2017. How do you calculate the cause of change analysis past sales?
Comparative Income Statements Consider the following income statement data from the Mono Company: Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense 2019 2018 $600,000 $450,000 336,000 279,000 105,000 99,000 60,000 50,000 4,000 3,000 Prepare a contparative income statement, showing increases, and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). Sales Revenue Cost of Goods Sold MONO COMPANY Comparative Income Statements ♦ Selling Expenses Administrative Expenses Total Income before Income Taxes ◆ → $ $ 2019 0 $ 0 0 0 0 oooo 0 0 $ 2018 Increase (Decrease) 0 $ 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 Percent Change 0% 0% 0% 0% 0% 0% 0% 0% 0 %
Please help me with show all calculation thanku
Nikal
Interperiod Tax Allocation Quick Company reports the following revenues and expenses in its pretax financial income for the year ended December 31, 2013: Revenues 229,600 Expenses (160,100) Pretax financial income 69,500 The revenues included in pretax financial income are the same amount as the revenues included in the company’s taxable income. A reconciliation of the expenses reported for pretax financial income to the expenses reported for taxable income, however, reveals four differences: 1. Depreciation deducted for financial reporting exceeded depreciation deducted for income taxes by $11,000. 2. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by 15600. 3. Warranty costs deducted for income taxes exceeded warranty expenses deducted for financial reporting by 8900. 4. Legal expense of $9,800 was deducted for financial reporting; it will be deducted for income taxes when…
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2022. INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022 Net sales Costs Depreciation (Figures in $ millions) Earnings before interest and taxes (EBIT) Interest expense Pretax income $ 27,572 17,574 1,407 $ 8,591 522 8,069 Federal taxes (@ 21%) Net income 1,694 $ 6,375 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets 2022 2021 Liabilities and Shareholders' Equity Current liabilities 2022 2021 $ 2,341 $ 2,341 Debt due for repayment 1,380 127 1,094 $ 4,942 1,340 Accounts payable 122 Total current liabilities $ 3,408 $ 3,408 $ 382 3,148 $ 3,530 621 $ 4,424 Long-term debt $ 24,682 2,809 2,988 $ 22,840 Other long-term liabilities 2,658…