Question
In: Finance
A firm reported the following income statement (all figures arein thousands of dollars):Net Sales...
A firm reported the following income statement (all figures are in thousands of dollars):
| Net Sales | 1,100 | |
| - | operating costs | 200 |
| - | depreciation & amortization | 230 |
| = | Operating Income (EBIT) | ? |
| - | interest | 76 |
| = | Earnings Before Taxes (EBT) | ? |
| - | taxes | 81 |
| = | Net Income | ? |
What is the operating income of this firm?
NOTE: the - and = in red have been added to serve as a hint on how to compute each item of interest.
A firm reported the following income statement (all figures are in thousands of dollars):
| Net Sales | 1,550 | |
| - | operating costs | 200 |
| - | depreciation & amortization | 220 |
| = | Operating Income (EBIT) | ? |
| - | interest | 77 |
| = | Earnings Before Taxes (EBT) | ? |
| - | taxes | 70 |
| = | Net Income | ? |
What is the net income of this firm?
NOTE: the - and = in red have been added to serve as a hint on how to compute each item of interest.
A firm reported the following income statement (all figures are in thousands of dollars):
| Net Sales | 1,595 | |
| - | operating costs | 200 |
| - | depreciation & amortization | 200 |
| = | Operating Income (EBIT) | ? |
| - | interest | 121 |
| = | Earnings Before Taxes (EBT) | ? |
| - | taxes | ? |
| = | Net Income | ? |
What is the amount of taxes the firm is charged, given that the tax rate is 30%?
answer using one decimal figure.
NOTE: the - and = in red have been added to serve as a hint on how to compute each item of interest.
Solutions
Expert Solution
Q-1) Operating Income(EBIT) = Sales - Operating Costs - depreciation & amortization
EBIT = $1100,000 - $200,000 - $230,000
EBIT = $670,000
Q-2)
Operating Income(EBIT) = Sales - Operating Costs - depreciation & amortization
EBIT = $1550,000 - $200,000 - $220,000
EBIT = $1130,000
Net Income = EBIT - Interest Expenses - Taxes
Net Income = $1130,000 - $77,000 - $70,000
Net Income = $983,000
Q-3)
Operating Income(EBIT) = Sales - Operating Costs - depreciation & amortization
EBIT = $1595,000 - $200,000 - $200,000
EBIT = $1195,000
Earnings Before Taxes (EBT)= EBIT - Interest Expenses
Earnings Before Taxes (EBT)= $1195,000 - $121,000
Earnings Before Taxes (EBT) = $1074,000
Amount of taxes = Earnings Before Taxes (EBT)*Tax Rate
Amount of taxes = $1074,000*30%
Amount of taxes = $322,200
jeff jeffy answered 2 years agoRelated Solutions
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The following comparative income statement (in thousands of
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Vertical Analysis of Income Statement The following comparative
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The following comparative income statement (in thousands of
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161,859
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117,849...
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The following comparative income statement (in thousands of
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Revenues:
Admissions
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statement. All numbers are in dollars. The tax rate is
20%.
Cost of Goods Sold
10,000
Taxes
2,000
Administration
2,500
Interest
750
Depreciation
1,000
Determine:
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Net Income
EBIT
Plowback in dollars if the plowback ratio (the amount
of money put back into the company) was 30%
Payout in dollars if the payout ratio (the amount of
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The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
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dollars) for the two recent fiscal years was adapted from the
annual report of Motor Speedways Inc., owner and operator of
several major motor speedways.
1
Current Year
Previous Year
2
Revenues:
3
Admissions
$93,991.00
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4
Event-related revenue
142,204.00
134,460.00
5
NASCAR broadcasting revenue
189,930.00
179,280.00
6
Other operating revenue
60,875.00
78,186.00
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Total revenue
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$498,000.00
8
Expenses and other:
9
Direct expense of events
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The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
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dollars) for the two recent fiscal years was adapted from the
annual report of Speedway Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
1
Current Year
Previous Year
2
Revenues:
3
Admissions
$116,034.00
$130,239.00
4
Event-related revenue
151,562.00
163,621.00
5
NASCAR broadcasting revenue
192,662.00
185,394.00
6
Other operating revenue
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Total revenue
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Expenses and other:...
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
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