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mars1129 [50]
2 years ago
6

Kwok Enterprises has the following income statement. How much after-tax operating income does the firm have? Sales $2,050 Costs

1,400 Depreciation 250 EBIT $400 Interest expense 70 EBT $330 Taxes (25%) 82.50 Net income $247.50
Business
1 answer:
tester [92]2 years ago
7 0

Answer:

Sales                                  2,050

Costs                                  (1,400)

Depreciation                      <u>(250)</u>

EBIT                                     400

Interest expense                <u> (70)</u>

Earnings before tax             330

Tax @ 25%                           <u>(82.50)</u>

After-tax operating income <u>247.50</u>

Explanation:

The after-tax operating income equals sales minus costs minus depreciation minus interest expense minus tax.

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