Sales: 17,000,000 COGS: 11,000,000 Gross Margin: Admin Overhead: 2,500,000 EBITD

Question

Sales:                                  17,000,000

COGS:                                  11,000,000

Gross Margin:

Admin Overhead:              2,500,000

EBITDA:

Depr & Amort:                      780,000

EBIT:

Interest:                                 435,000

EBT:

Taxes:                                    731,200

Net Income:

Total Assets:                                     10,350,000

Total Interest-bearing Debt:            6,214,286

Total Current Liabilities:                        500,014

Total Fixed Assets & IP:                     7,500,000

GIVEN THE INFORMATION ABOVE, FIND:

1. Net Income

2. Current Assets

Explanation / Answer

2)

Current assets:

= $10,350,000-$7,500,000

= $2,850,000

Sales $ 17,000,000.00 Less: Costs $ 13,500,000.00 Depreciation $        780,000.00 EBIT $    2,720,000.00 Less: Interest $        435,000.00 Earnings before tax (EBT) $    2,285,000.00 Less: Tax @ 35% $              731,200 Net income $          1,553,800

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