Question

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 3 months ago
Next > < Previous

Related Solutions

Suppose Stuart Company has the following revenue and expenses for 2017: Revenues of $8,800,000 Cost of...
Suppose Stuart Company has the following revenue and expenses for 2017: Revenues of $8,800,000 Cost of Goods Sold of $2,640,000 Depreciation Expenses of $900,000 Income Taxes of $1,508,000 Interest Expenses of $110,000 Other Expenses of $500,000 Sales, General, & Administrative Expenses of $880,000 Create an income statement with amounts in thousands What is the value of Earnings Before Interest & Taxes? Please specify your answer in the same units as the income statement.
Suppose Dansko Integrated has the following results related to cash flows for 2018: Decrease in Debt...
Suppose Dansko Integrated has the following results related to cash flows for 2018: Decrease in Debt of $200,000 Dividends Paid of $800,000 Purchases of Property, Plant, & Equipment of $6,700,000 Other Adjustments from Financing Activities of -$600,000 Other Adjustments from Investing Activities of $300,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows for investing and financing activities with amounts in thousands. What is the Net Cash Flow from Investing and Financing Activities?...
Dansko Integrated Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 9,900 Accounts Payable...
Dansko Integrated Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question....
Dansko Integrated Balance Sheet As of January 24, 2018 (amounts in thousands) Cash 9,900 Accounts Payable...
Dansko Integrated Balance Sheet As of January 24, 2018 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer...
Dansko Integrated Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 9,900 Accounts Payable...
Dansko Integrated Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question....
Dansko Integrated Balance Sheet As of January 24, 2018 (amounts in thousands) Cash 9,900 Accounts Payable...
Dansko Integrated Balance Sheet As of January 24, 2018 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer...
Dansko Integrated Balance Sheet As of January 24, 2018 (amounts in thousands) Cash 9,900 Accounts Payable...
Dansko Integrated Balance Sheet As of January 24, 2018 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer...
The ABC Partnership has the following revenues and expenses for the past year: Sales $430,000 Cost...
The ABC Partnership has the following revenues and expenses for the past year: Sales $430,000 Cost of Goods Sold 218,000 Gross Profit 212,000 Operating Expenses 142,000 Net Income $70,000 The three owners are Albert, Bob, and Clay. Their capital accounts at the beginning of the year were as follows: Albert $30,000 Bob 20,000 Clay 50,000 Albert invested an additional $5,000 in the business on june 30th. During the year the three partners each withdrew the following amounts: Albert $12,000 Bob...
Under the accrual basis accounting, revenues and expenses are recognized by the following principles: Revenue recognition:...
Under the accrual basis accounting, revenues and expenses are recognized by the following principles: Revenue recognition: Revenue is recognized when both of the following conditions are met: Revenue is earned and Revenue is realized or realizable. Expense recognition: Expense is recognized in the period in which related revenue is recognized (this is also known as the Matching Principle). Respond to the following in a minimum of 175 words: Discuss when the requirements of the revenue recognition principle are usually met....
Income Statement For the Year Ended December 31, 2018 Sales $8,500,000 Manufacturing Expenses Variable $3,250,000 Fixed...
Income Statement For the Year Ended December 31, 2018 Sales $8,500,000 Manufacturing Expenses Variable $3,250,000 Fixed overhead 640,000 3,890,000 Gross Margin $4,610,000 Selling and administrative expenses Commissions $580,000 Fixed marketing expenses 300,000 Fixed admin expenses 450,000 1,330,000 Net Operating Income $3,280,000 Fixed Interest expenses 230,000 Income before Taxes $3,050,000 Income Taxes (21%) 640,500 Net Income $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT