Question

You have the following income statement data:

Answer 1

Answer:

$295

Explanation:

The computation of the earnings before interest and taxes (EBIT) is shown below:

= Sales - costs of goods sold - depreciation expense

= $900 - $485 - $120

= $295

Simply we deduct the costs of goods sold and the depreciation expense from the sales amount so that the accurate amount can be calculated

All other information which is given is not relevant. Hence, ignored it