Question

Following is information from Skechers USA, Inc. for fiscal 2016 (in thousands).

Total 2016 revenue $3,563,311
Total revenue growth rate 5.0%
Terminal revenue growth rate 2%
Net operating profit margin (NOPM) 8.2%
Net operating asset turnover (NOAT)3.42
Projected 2017 total revenue would be:
A. $3,634,577 thousand.
B. $3,855,503 thousand.
C. $3,324,568 thousand.
D. $3,741,477 thousand.
E. None of the above.

Answer 1

D. $3,741,477 thousand

Step-by-step explanation:

Calculation to determine what total revenue would be:

Total value=$3,563,311 million ×(1+.05)

Total value=$3,563,311 million × 1.05

Total value = $3,741,477 thousand

Therefore total revenue would be:$3,741,477 thousand