Answer:
$560,838.44
Explanation:
Given that,
Earned income after taxes = $2,768,695.75
Revenues = $13,200,000
costs (excluding depreciation and amortization) = 61 percent of sales
Interest expenses = $392,168
Average tax rate = 34 percent
Income after taxes = Income before taxes × (1 - tax rate)
$2,768,695.75 = Income before taxes × (1 - 0.34)
$2,768,695.75 ÷ 0.66 = Income before taxes
$4,194,993.56 = Income before taxes
cost of goods sold:
= 61 percent of sales
= 0.61 × $13,200,000
= $8,052,000
Income before taxes = Sales - Cost of goods sold - Depreciation and amortization expenses - interest
$4,194,993.56 = $13,200,000 - $8,052,000 - Depreciation and amortization expenses - $392,168
$4,194,993.56 = $4,755,832 - Depreciation and amortization expenses
$4,755,832 - $4,194,993.56 = Depreciation and amortization expenses
$560,838.44 = Depreciation and amortization expenses
