Question

Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firm s income before tax?

Answer 1

Answer:

The amount of the firm s income before tax is  $4.360.000,00  

Explanation:

Income Before  Tax  or Earnings Before Tax (EBT) is  equal to Sales minus expenses excluding taxes; so in this case:

$50,200,000 - $10,115,000 - $35,025,000 - $750,000 =

Sales - Operating Expenses - Cost of Goods - Interest Expense =

$4.360.000,00