Answer:
Depreciation =$541,138.36
Explanation:
Income after tax = Profit before tax - income tax
Profit before tax = Profit before interest and tax (PBIT) - interest expense
Profit before interest and tax (PBIT) = Revenue - cost of sales - Depreciation and amortization
Cost of sales = 61% of sales = 61%× $13,148,000 =8,020,280
before before tax = Profit after tax /(1-T)
Profit before tax = 2,768,313.00/(1-0.34) = 4,194,413.64
Profit before interest and tax = Profit before tax + interest
= 4,194,413.64 + 392,168 = 4,586,581.64
Profit before interest and tax (PBIT) = Revenue - cost of sales - Depreciation and amortization
We can substitute the figures into the equation above to work out the depreciation and amortization
4,586,581.64 = 13,148,000 - 8,020,280 - depreciation
Depreciation= 5127720
- 4,586,581.64 =541,138.36
Depreciation =$541,138.36
