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.

Expert Solution

Income Statement
Particulars	Amount (in thousand)
Sales	8,800.00
Less: Cost of goods sold	2,640.00
Gross profit(8800-2640)	6,160.00
Less: Depreciation	900.00
Less: Other Expenses	500.00
Less:Selling & Administrative expenses	880.00
Earning before Interest and tax(6160-900-500-880)	3,880.00
Less: Interest	110.00
Earning before tax(3880-110)	3,770.00
Less: Tax	1,508.00
Net Income(3770-1508)	2,262.00

Earning before Interest & tax is $3880000

ekkarill92 answered 1 year ago

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