Description
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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