1. Advantage First Corporation has sales of $4,744,860; income tax of $570,194;

Question

1. Advantage First Corporation has sales of $4,744,860; income tax of $570,194; the selling, general and administrative expenses of $218,931: depreciation of $318,835; cost of goods sold of $2,652,360; and interest expense of $178,847. What is the amount of the firms EBIT?

2. Evening Story Corporation has sales of $4,228,030; income tax of $302,203; the selling, general and administrative expenses $290,388; depreciation of $393,405; costs of goods sold of $2,621,470; and interest expense of $149,772. Calculate the amount of the firms gross profit.

Explanation / Answer

EBIT= earning before tax and interest

= sales-cost of goods sold-expenses-depreciation

4,744,860-2,652,360-218,931-318,835=$ 1554734

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.