Banana Box Corporation has sales of $4,915,390, income tax of $344,367, the selling, general and administrative expense of $248,106, depreciation of $320,544, cost of goods sold of $2,574,420 and interest expense of $199,573. Calculate the amount of the firm's income before taxes?
Earnings Before Taxes:
The earnings before taxes also referred to as the taxable income is the amount to which the tax is applied and reduced from, to derive the net income. The earnings before taxes represent the income remaining after meeting all the operating, noncash and nonoperating expenses from the gross profit. Gross profit is the difference between the sales revenue and the cost of goods sold.
Answer and Explanation:
Banana Box Corp's income before taxes is $1,572,747.
We need to prepare the income statement for Banana Box Corp. to determine the income before taxes, (EBT).
|Cost of goods sold||$2,574,420|
|Selling, general and administrative expenses||$248,106|
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