In: Finance
XYZ Inc., has sales of $800,000, costs of $375,000, depreciation expense of $85,000, interest expense of $50,000, and a tax rate of 35%. What is the net income of this firm? (10 Points)
The income statement for the company is
(Use Excel and Excel Formulas to answer)
Sales | 800000 |
Cost | 375000 |
gross Profit | 425000 |
operating Expense | 85000 |
Operating Income | 340000 |
Interest Expense | 50000 |
EBT | 290000 |
Tax | 101500 |
Net Income | 188500 |
Net Income = EBT - Tax
Sale -cost = GP
GP - operating expense = operating INcome
EBT = Operating income- interest expense
Depreciation is a operating expense
Tax is calculated on EBT = 290000 * 35% = 101500