Question: Garden Pro Corporation has sales of $4,549840

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Question:

Garden Pro Corporation has sales of $4,549840; income tax of $471,551; the selling, general and administrative expenses of $274,154; depreciation of $357,439; cost of goods sold of $2,719,620; and interest expense of $163,095. Calculate the firm Net Income

Answer:

EBIT = Sales – (COGS + SG&A + Depreciation Expenses)

= $4,549,840- ($2,719,620 + $274,154 + $357,439)

= $4,549,840 – $3,351,213

= $1,198,627.

EBIT of company is $1,198,627.

Now,

Net Inocme = EBIT – Interest Expenses – Tax expenses

= $1,198,627. – $163,095 – $471,551

= $563,981

Net Income of company is $563,981.

 

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