A firm reports the following income statement items: sales of $60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold $34,025,000; and interest expense of $750,000.What is the amount of the firm's EBIT?
A)$18,154,000
B)$14,935,000
C)$16,410,000
D)$7,775,000

Question

Quizplus · Accepted Answer

EBIT (Earnings Before Interest and Taxes) = Sales - Cost of Goods Sold - Operating Expenses
EBIT = $60,550,000 - $34,025,000 - $10,115,000
EBIT = $16,410,000

A Firm Reports the Following Income Statement Items: Sales of $60,550,000;