TABLE 4.2
Tentex Income Statement (2003) and Calculation of NOPAT
Benchmark
Adjustment to
Row
Concepts
Reported Value
Value
Earnings
Adjusted Values
1
Gross receipts less returns and allowances
$3,562,556.00
—
—
$3,562,556.00
2
Cost of goods sold
$2,030,036.00
—
—
$2,030,036.00
3
Depreciation
$250,000.00
$250,000.00
4
Compensation of officers
$681,520.00
$258,574.00
($422,946.00)
$258,574.00
Compensation of officer 1
$340,760.00
$129,287.00
($211,473.00)
$129,287.00
Compensation of officer 2
$340,760.00
$129,287.00
($211,473.00)
$129,287.00
5
Salaries and wages
$350,000.00
$268,810.00
($81,190.00)
$268,810.00
Bookkeeping clerk (wife)
$50,000
$28,650.00
($21,350.00)
$28,650.00
Secretary (son)
$45,000
$26,390.00
($18,610.00)
$26,390.00
Product promoter (brother)
$55,000
$25,360.00
($29,640.00)
$25,360.00
Machinist (daughter)
$45,000
$33,410.00
($11,590.00)
$33,410.00
6
Repairs and maintenance
$1,800.00
—
—
$1,800.00
7
Rents
$18,400.00
—
—
$18,400.00
8
Interest
$55,800.00
—
—
$55,800.00
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