Question

Income statements and balance sheets follow for The New York Times Company. Refer to these financial statements to answer the requirements.

The New York Times Company Consolidated Statements of Income
	Fiscal year ended
(in thousands)	Dec. 29, 2016	Dec. 30, 2015
Revenues
Circulation	$ 880,543	$ 851,790
Advertising	580,732	638,709
Other	94,067	88,716
Total revenues	1,555,342	1,579,215
Production costs
Wages and benefits	363,051	354,516
Raw materials	72,325	77,176
Other	192,728	186,120
Total production costs	628,104	617,812
Selling, general and administrative costs	721,083	713,837
Depreciation and amortization	61,723	61,597
Total operating costs	1,410,910	1,393,246
Restructuring charge	14,804	0
Multiemployer pension plan withdrawal expense	6,730	9,055
Pension settlement charges	21,294	40,329
Early termination charge	0	0
Operating profit	101,604	136,585
Loss from joint ventures	(36,273)	(783)
Interest expense, net	34,805	39,050
Income from continuing operations before income taxes	30,526	96,752
Income tax expense/(benefit)	4,421	33,910
Income from continuing operations	26,105	62,842
Loss from discontinued operations, net of income taxes	(2,273)	0
Net income	23,832	62,842
Net loss attributable to the noncontrolling interest	5,236	404
Net income attributable to The New York Times Company common stockholders	$29,068	$63,246

a. Compute net operating profit after tax (NOPAT) for 2016 and 2015. Assume that combined federal and 37% tax rate

Answer 1

Net operating profit after tax

For 2016

Operating ProfitX(1-Tax Rate)

101604X(1-0.37)

=$64011

For 2015

Operating ProfitX(1-Tax Rate)

136585X(1-0.37)

= $86049