Microsoft Corporation had $245,122 million sales, $61,575 million operating expenses. The company had $320,107 million of total invested capital. After-tax cost of capital was 9.99%, and federal + state tax rate was 18.2%.
Added by Richard G.
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**Operating Income (EBIT)** 2. **Net Operating Profit After Tax (NOPAT)** 3. **Economic Value Added (EVA)** Let's proceed step-by-step. Show more…
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Use the income statement for Microsoft Corporation to compute the following: Tax shield The tax on operating profit NOPAT The company's combined federal and state statutory tax rate is 37.0%. MICROSOFT CORP. Income Statement June 30, 2015 (in millions) Revenue Product $75,956 Service $17,624 Total revenue $93,580 Cost of revenue Product $21,410 Service and other $11,628 Total cost of revenue $33,038 Gross margin $60,542 Research and development $12,046 Sales and marketing $15,713 General and administrative $4,611 Impairment, integration, and restructuring $10,011 Operating income $18,161 Other nonoperating income (expense) Interest income $766 Gains on investments $716 Interest expense ($781) Losses on derivatives and other nonoperating expenses ($355) Income before taxes $18,507 Provision for income taxes $6,314 Net income $12,193
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problem 3.11 (EVA) For 2021, Gourmet Kitchen Products reported 23.5 million of sales and 19 million of operating costs ( including depreciation). The company has 14 million of total invested capital. It's after-tax cost of capital is 10% and its federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA) that s, how much value did management add to stockholders wealth during 2021?
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BALANCE SHEETS (In millions) June 30, Assets Current assets: Cash and cash equivalents Short-term investments Total cash, cash equivalents, and short-term investments Accounts receivable, net of allowance for doubtful accounts of $788 and $411 Inventories Other current assets Total current assets Property and equipment, net of accumulated depreciation of $43,197 and $35,330 Operating lease right-of-use assets Equity investments Goodwill Intangible assets, net Other long-term assets Total assets Liabilities and stockholders’ equity Current liabilities: Accounts payable Current portion of long-term debt Accrued compensation Short-term income taxes Short-term unearned revenue Other current liabilities Total current liabilities Long-term debt Long-term income taxes Long-term unearned revenue Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and contingencies Stockholders’ equity: Common stock and paid-in capital – shares authorized 24,000; outstanding 7,571 and 7,643 Retained earnings Accumulated other comprehensive income (loss) Total stockholders’ equity Total liabilities and stockholders’ equity
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