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In: Accounting

Suppose Dansko Integrated has the following revenue and expenses for 2018: Revenues of $8,500,000 Cost of...

Suppose Dansko Integrated has the following revenue and expenses for 2018:

Revenues of $8,500,000
Cost of Goods Sold of $2,550,000
Depreciation Expenses of $800,000
Income Taxes of $1,144,000
Interest Expenses of $90,000
Other Expenses of $500,000
Sales, General, & Administrative Expenses of $1,700,000

Create an income statement with amounts in thousands

What is the value of Earnings Before Interest & Taxes?

Solutions

Expert Solution

Dansko Integrated  
Income Statement
For the year ended 2018
Revenues            85,00,000
Less: Cost of goods sold            25,50,000
Gross Profit            59,50,000
Less: Depreciation Expenses               8,00,000
Less: Sales, General, & Administrative Expenses            17,00,000
Less: Other Expenses               5,00,000
Earnings Before Interest & Taxes (EBIT)            29,50,000
Less: Interest Expenses                  90,000
Earnings Before Taxes (EBT)            28,60,000
Less: Income Taxes            11,44,000
Net Income            17,16,000

"Therefore, the value of Earnings Before Interest & Taxes (EBIT) will be $2,950,000"

ekkarill92 answered 2 months ago
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