Question

The Katy Company engages in the manufacture and sale of books worldwide. Its income statement for the year ending June 30, 2019 and selected amounts from its June 30, 2019 balance sheet follow:

Total revenue	$320,000
Cost of revenue	120,000
Gross profit	200,000
Operating expenses	50,000
Operating income or loss	150,000
Total other income, net	3,000
Earnings before interest and taxes	153,000
Interest expense	3,000
Income before tax	150,000
Income tax expense	31,500
Net Income	$118,500
Assume the marginal tax rate is 21%.
	30-Jun-19	30-Jun-19
Total operating assets	320,000	340,000
Total operating liabilities	160,000	150,000 NOPAT RNOA NOPM Interpret the meaning of these three amounts as it applies to Katy Company.

Answer 1

.

for formulas and calculations, refer to the next image -