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Email Instructor Save Exit Submit Assignment for Gradin Question 3 or4 Check My Work estions Exercise 9-21 eBook Exercise 9-21 Income Computation for a Manufacturing Firm The following data relate to GenMet, a U.S. based consumer goods manufacturing firm, for the fiscal year ending October 31, 2013. Reported amounts are in millions of U.S. dollars ($). October 31, 2013 $101.5 119.1 322.3 October 31, 2012 S73.7 100.8 286.2 Work-in-Process Inventory. GenMet incurred manufacturing costs (direct material, direct labor, manufacturing overhead) during fiscal 2013 totaling $2,752.0. Sales revenue was $6,700.2, selling and administrative expenses were $2,903.7, and interest expense was $151.9. The income tax rate is 35%. Compute GenMet's net income for fiscal year 2013. Round your calculations and answer to one decimal place. Enter the amount in millions. 634.0 million Hide Feedback Incorrect Check My Work Icon Key

Explanation / Answer

Sales = 6700.2

Manufacturing costs = 2752

Admin expenses =2903.7

EBIT = 6700.2-2752-2903.7 = 1044.5

Interest expense = 151.9

EBT = 1044.5-151.9 = 892.6

Net income = EBT*(1-tax rate) = 892.6*(1-0.35) = 580.19

Net income = $580.2 (Rounded to one decimal)

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