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29 November, 16:37

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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  1. 29 November, 19:52
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    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.
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