Advantage First Corporation has sales of $4,279,560; income tax of $566,146; the selling, general and administrative expenses of $297,728; depreciation of $319,088; cost of goods sold of $2,749,920; and interest expense of $115,264. What is the amount of the firm's EBIT?
An income statement is a major financial statement that is prepared first before the balance sheet. The income statement shows the details on the firm's major sources of revenue and expenses streams that can help the users to analyze and improve on for better profitability.
Answer and Explanation:
We will compute for the earnings before interest and taxes. Interest expense of $115,264 is not included in the computation.
|Cost of Goods Sold||(2,749,920)|
|Selling, General and Administrative Expenses||(927,728)|
|Earnings Before Interest and Taxes||282,824|
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Accounting 101: Financial AccountingChapter 2 / Lesson 2