The revenue is $40,000, the cost of goods sold is $26,000, the selling, general and administrative expenses are $7,000, interest expense is $2,000, and depreciation is $3,000. What is the EBT (Earnings Before Taxes)?

The revenue is $40,000, the cost of goods sold is $26,000, the selling, general and administrative expenses are $7,000, interest expense is $2,000, and depreciation is $3,000. What is the EBT (Earnings Before Taxes)?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: Sumer company liabilities were (560,000) dinars and its capital (440,000) dinars, so what is the…

A: Formula: Assets=Liabilities+Capital

Q: Kipay Co. had the following account balances: Sales - P120,000; Cost of goods sold - P60,000; Salary…

A: Income before tax means the profit earned before paying any taxes to the government authorities. It…

Q: Kenzy Co. had the following account balances: Sales revenue 24 120,000 Cost of goods sold 60,000…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: Sales are 2,000,000. COGS are 1,000,000. Depreciation is 300,000. Taxes are 150,000. SG&A is…

A: Formula used: Operating cash flow = Net income + Depreciation. Sum of both net income and…

Q: The formula for determining the rate earned on total assets is Net Income + Interest Expense/Average…

A: Rate earned on total assets = (Net income + Interest expense)/Average total assets

Q: Frezia Corp.'s total assets at the end of last year were P315,000 and its net income after taxes was…

A: Return on total assets = Net Income/ Avg. total assets

Q: The Johnson's Company had net income(after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times Interest Earned is the ratio that depicts how many times the organization can cover its…

Q: The Johnson's Company had net income (after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times interest earned ratio is a ratio calculated to determine how many times the earnings available…

Q: A company reported a sale revenue for $700,000. The gross profit margin is 60% and the selling…

A: Definition: Net income: Net income is the excess amount of revenue that arises after deducting all…

Q: Carrefour Company's gross profit is OMR 550,000. The other balances are: Insurance OMR 70,000, Rent…

A: Net income before interest and tax = Gross profit + rent received - (insurance + salaries and wages…

Q: If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the…

A: 1. Calculate the current ratio by dividing the current assets which is P600,000 by the current…

Q: The Weymire Corporation provides you with the following information for the year ended 12/3120:…

A: Cash Flow A/c

Q: CAS Company has net sales of $200,000, cost of goods sold $120,000, and operating expenses of…

A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…

Q: Jones Company had net income of $10,000 for the year. Beginning total assets were $150,000 and…

A: Lets understand the basics. Return on asset is a ratio which indicates that how much profitability…

Q: Operating Profit?

A: Operating profits are profits that are earned by the company from its major business activities…

Q: Sales are 2,000,000. COGS are 1,000,000. Depreciation is 300,000. Taxes are 150,000. SG&A is…

A: Net Income: Net income means net profit or net earnings, It is an amount that an individual or an…

Q: Satum Company Income Statement for year ended Dec. 31, 2018 $238,000 153,000 Sales Revenue Cost of…

A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…

Q: Compute the amount of cash collected from customers. Compute the amount of cash paid for…

A: Cash flow analysis is important for the business since it allows the business to assess the amount…

Q: The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the…

A: Return on assets =Net earnings / Average total assets Where, Average total assets = (total assets,…

Q: The following information is provided for the current year: Revenue - 1,200,000; Income from…

A: In order to determine the net income, all the expenses are required to be deducted from the sales…

Q: Prepare an income statement if your company’s gross sales is P300,000, with operating expenses of…

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: ASG Corporation has the following data in their accounting books Sales-P1,000,000 Cost of Sales…

A: Introduction: Income statement: All revenues and expenses are to be show in income statement. It…

Q: Gambino Enterprises, Inc. reported the following Items of revenues and éxpenses ended December 31,…

A: Multiple-step income statement is a structure of income statement in which the items are grouped…

Q: What was Callie's income from operations?

A: Income from Operations involves those transactions which are related to Operations of the company.…

Q: Staycate Travels Inc. reports a gross profit of $35,000, interest expense of $4,000, a tax rate of…

A: Gross profit (GP) = $ 35000 Interest expenses (I) = $ 4000 Tax rate (T) = 30% Profit after tax (PAT)…

Q: The net income reported on the income statement for the current year was $275,000. Depreciation…

A: CASH FLOW STATEMENT:-Cash flow statement known as cash flows is a financial statement that shows…

Q: Income tax expense has not yet been recorded. The income tax rate is 40%. Determine the following:…

A: Operating profit refers to the amount of profit earned by a business through its operations.…

Q: The following income statement and balance sheets for The Athletic Attic are provided. THE…

A: Gross profit = $3370000 Sales = $8740000

Q: Carrefour Company's gross profit is OMR 550,000. The other balances are: Insurance OMR 70,000, Rent…

A: Net profit of the company means gross profit with all other income and deducting all expense of the…

Q: Delfinio's has total revenues of $4,315, selling and administrative expenses of $611, depreciation…

A: Non-cash items are income and expenses which doesn't have any effect on the cash balance. There is…

Q: If the net income after tax of the company is P4,000,00O, starting balance of assets is P500,000 and…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When a company buys equipment for $161,000 and pays for one half in cash and the other one half is…

A: The accounting equation is followed while recording any financial transaction. As per the accounting…

Q: The Callie Company has provided the following information: Operating expenses were $231,000; Cost of…

A: Formula: Gross profit = Net sales - cost of goods sold Deduction of cost of goods sold from Net…

Q: Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500,…

A: The Income Statement tells how much any company had earned. Hence, income Statement helps to…

Q: Marco Travels reports a gross profit of $35,000, interest expense of $4,000, a tax rate of 30% and…

A: The earnings after taxes are calculated by deducting all the indirect expenses, including…

Q: Complete the income statement table below Sales $15,000 Gross income Cost of goods sold Operating…

A: Lets understand the basics. Income statement is a statement prepare which contains the sources of…

Q: Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the…

A: Gross Profit Ratio = Gross Profit/Net Sales Profit Margin = Net Profit/ Net Sales

Q: Chou Company has a net income of $52,000, assets at the beginning of the year are $259,000 and…

A: Return on assets indicates profitability rate on the bases of assets. It can be calculated by…

Q: Carrefour Company's gross profit is OMR 550,000. The other balances are: Insurance OMR 70,000, Rent…

A: Net Income before Interest and Tax = Gross Profit - Other Operating Expenses + Other Income

Q: Meldy Corporation had the following items of income and expenses during the year: Gross receipts…

A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…

Q: 1. Sales on account were $548,000. The beginning receivables balance was $128,000 and the ending…

A: The question is based on the concept of Cash flow statement. Cash flow statement is the statement…

Q: Rollins Corp's total assets at the end of last year were $300,000 and its EBIT was $75,000. What was…

A: BEP is calculated as the ratio of Earnings Before Interest and Taxes to Total Assets

Q: XYM has interest expense of $168, total revenues of $38,000, costs of goods sold $18,000,…

A: Given, Debt Equity ratio = 0.625 Total debt = $ 6800 Debt Equity ratio = 0.625 = Total debt /…

Q: Sarasota Industries has Cash of $220,000, Accounts receivable of $130,000, inventory of $180,000,…

A: Formula: Working capital = Current Assets - Current liabilities

Q: The following income statement and additional year-end information is provided . $ 1,828,000 991,000…

A: Solution:

Q: A company has assets totaling $30,000, sales revenues of $100,000, rent expense of $24,000, wages…

A: Lets understand the basics. For calculating net income, we need to use below formula. Net income =…

Question

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Staycate Travels Inc. reports a gross profit of $35,000, interest expense of $4,000, a tax rate of 30% and earnings after taxes of $8,610. What is Staycate’s depreciation expense?
Sales are 2,000,000. COGS are 1,000,000. Depreciation is 300,000. Taxes are 150,000. SG&A is 100,000. Interest Expense is 75,000. What is Net Income?
Gia, Inc. has sales of $497,000, costs of $276,000, depreciation expense of $43,000, interest expense of $24,000, and a tax rate of 21%. How do i calculate net income?
For the past year, Momsen, Ltd., had sales of $46,577, interest expense of $3,932, cost of goods sold of $16,834, selling and administrative expense of $11,861, and depreciation of $6,560. If the tax rate was 38 percent, what was the company's net income?
For the past year, shame ltd., had sales of $45,002, interest expense of $4,306, cost of goods sold of $18,349, selling and administrative expense of $12,146, and depreciation of $6,995. If the tax rate was 33 percent, what was the company's net income?
During the year, cost of goods sold was $120,000; income from operations was $114,000; income tax expense was $24,000; interest expense was $18,000; and selling, general, and administrative expenses were $66,000. Calculate net sales, gross profit, income before taxes, and net income.
During the year, net sales were $250,000; gross profit was $100,000; net income was $40,000; income tax expense was $10,000; and selling, general, and administrative expenses were $44,000. Calculate cost of goods sold, income from operations, income before taxes, and interest expense.
Andre's Bakery has sales of $613,000 with costs of $479,000. Interest expense is $26,000 and depreciation is $42,000. The tax rate is 25 percent. What is the net income?
In an income statement. If the income is 426,000 and the expenses is 500,000. The result of operation is
Company XYZ, Inc. reported a total sales revenue of P15,000,000 of which 20% pertains to the cost of goods sold. In addition, operating expenses in the most reporting period were P240,000 in salaries, P750,000 in rent, P300,000 in utilities and P150,000 in depreciation. Interest expense for the period amounted to P2,500,000. Tax rate is 30%. Determine the interest coverage ratio using EBIT.
Marco Travels reports a gross profit of $35,000, interest expense of $4,000, a tax rate of 30% and earning after taxes of $8,610. What is the depreciation expenses?
Calculate the net profit for a company given the following information: total revenue of $500,000, cost of goods sold of $200,000, operating expenses of $100,000, and taxes of $50,000.