The January 2008 income statement for the clothing division of the Big Box Store Company is as follows:
Sales $445,000
Operating expenses 270,000
Net operating income 175,000
Interest expense 35,000
Earnings before taxes 140,000
Tax expense (30%) 42,000
Net Income $98,000
This division's net operating profit after taxes (NOPAT) is
A $140,000
B $87,500
C $122,500
D $24,500