In: Finance
The Ivanhoe Chemical Corporation announced that, for the period ending March 31, 2017, it had earned income after taxes of $2,768,313.00 on revenues of $13,148,000. The company's costs (excluding depreciation and amortization) amounted to 61 percent of sales, and it had interest expenses of $392,168. What is the firm's depreciation and amortization expense if its average tax rate is 34 percent? (Round answer to 2 decimal places e.g. 15.25.)
Depreciation and amortization | enter the Depreciation and amortization in dollars rounded to 2 decimal places |
Revenues | 13,148,000 |
Less:Costs(excluding depreciation and amortization)(13,148,000*61%) | 8020280 |
Less:depreciation and amortization expense(balance)(13,148,000-8020280-4586581.64) | $541138.36 |
EBIT(4194413.64+392,168) | 4586581.64 |
Less:interest expense | 392,168 |
EBT(100%)(2,768,313/0.66) | 4194413.64 |
Less:tax@34%(4194413.64*34%) | 1426100.64 |
Net income(66%) | 2,768,313 |