Question

In: Finance

Consider the following data for MNO Corporation: Sales $3,000; Operating expenses = $2,616.2, Depreciation= $100, tax rate = 45%. What is the after tax EBIT?

Consider the following data for MNO Corporation: Sales $3,000; Operating expenses = $2,616.2, Depreciation= $100, tax rate = 45%. What is the after tax EBIT? Select one:

a. 230

b. 340

c. 155%

d. $200

e. $170.28

Solutions

Expert Solution

The option (c) is right option.

 

 

Explanation:

EBIT = Sales - Operating costs - Depreciation

        = $3,000 - $2,616 - $100

       = $384 - $100

        = $284

 

After tax EBIT = $284 - ( $284*45% )

                         = $284 - $127.80

                         = $155%

 

Hence, the answer is option ( c ).

 

Kindly upvote my answer. Thank you.

Hence, the answer is option c.

Junaid answered 1 year ago
Next > < Previous

Related Solutions

ebit $300, tax rate is 30% and depreciation is 20%, what is the cash flow in...
ebit $300, tax rate is 30% and depreciation is 20%, what is the cash flow in period 4? They have the depreciation table showing 0.402 for 20% period 4. Does that help?
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT:...
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT: Intresrest Expense: Pre-tax Income: Taxes: Net Income: Dividened: Paid to Retained Earning: 1. Earn $85,000 in sales revenue: $40,000 into Accounts Receivable and $45,000 in cash. 2. The sales require $50,000 worth of existing inventory. $20,000 of additional inventory is purchased on credit and applied to the Accounts Payable. 3. $30,000 is collected from Accounts Recievable. 4. $35,000 of the Accounts Payable is due...
A firm has after rate income tax last year of $3.0. It’s depreciation expenses were 0.2...
A firm has after rate income tax last year of $3.0. It’s depreciation expenses were 0.2 million, and its total cash flow was $3.0 million. What happened to the net working capital during the year.
Your firm has the following data Income Statement Sales $50,250,000 Income tax: $1,744,000 Operating Expenses $10,115,000...
Your firm has the following data Income Statement Sales $50,250,000 Income tax: $1,744,000 Operating Expenses $10,115,000 Cost of good sold $35,025,000 Interest expense $750,000 a. What is the amount of EBIT?   b. What is the amount of Gross Profit of the firm? c. What is the amount of Income before contributions from the firm?
Consider tax rate = 10%. 2018 2019 Sales $ 5,223 $ 5,606 Depreciation $ 750 $...
Consider tax rate = 10%. 2018 2019 Sales $ 5,223 $ 5,606 Depreciation $ 750 $ 751 Cost of goods sold $ 1,797 $ 2,040 Other operational expenses $ 426 $ 356 Interest $ 350 $ 402 Cash $ 2,739 $ 2,802 Accounts receivable $ 3,626 $ 4,085 Short-term notes payable $ 529 $ 497 Long-term debt $ 9,173 $ 10,702 Net fixed assets $ 22,970 $ 23,518 Accounts payable $ 2,877 $ 2,790 Inventory $ 6,447 $ 6,625 Dividends...
Consider tax rate = 10%. 2018 2019 Sales $ 5,223 $ 5,606 Depreciation $ 750 $...
Consider tax rate = 10%. 2018 2019 Sales $ 5,223 $ 5,606 Depreciation $ 750 $ 751 Cost of goods sold $ 1,797 $ 2,040 Other operational expenses $ 426 $ 356 Interest $ 350 $ 402 Cash $ 2,739 $ 2,802 Accounts receivable $ 3,626 $ 4,085 Short-term notes payable $ 529 $ 497 Long-term debt $ 9,173 $ 10,702 Net fixed assets $ 22,970 $ 23,518 Accounts payable $ 2,877 $ 2,790 Inventory $ 6,447 $ 6,625 Dividends...
Hartzell Inc. had the following data for 2011, in millions: Net income=$600;after tax operating income [EBIT(1-t)]=&700;...
Hartzell Inc. had the following data for 2011, in millions: Net income=$600;after tax operating income [EBIT(1-t)]=&700; and total assets=$2,000. information for 2012 as follows: Net income=$825;after-tax operating income [EBIT(1-t)]=$925; and total assets=$2,500. How much free cash flow did the firm generate during 2012?
Assuming a 21 percent marginal tax rate, compute the after-tax cost of the following business expenses:...
Assuming a 21 percent marginal tax rate, compute the after-tax cost of the following business expenses: $6,600 premium on business property and casualty insurance. $2,200 fine paid for business entertainment. $4,700 premium on key-person life insurance. $60,000 political contribution. $8,800 client meals.
Garden Pro Corporation has sales of $4,813,035; income tax of $358,804; the selling, general and administrative expenses of $296,197; depreciation of
Garden Pro Corporation has sales of $4,813,035; income tax of $358,804; the selling, general and administrative expenses of $296,197; depreciation of $316,250; cost of goods sold of $2.712,787; and interest expense of $158,781. Calculate the firm's net income?
Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA)...
Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 26, 2011, for Best Buy, Inc. Refer to the information in the table to answer the following requirements. Assume Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Sales $40,023 $44,577 $49,650 $55,300 $61,592 $62,208 NOPAT 1,448 1,637 1,808 2,014 2,224 2,257 NOA 5,287 5,893 6,539 7,282 8,140 8,193 Answer the following requirements assuming a discount rate (WACC)...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT