Southern Markets has sales of $78,400,net income of $2,400,costs of goods sold of $43,100,and depreciation of $6,800.What is the common-size statement value of EBIT?

Question

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EBIT = Net income + Depreciation + Interest expense= $2,400 + $6,800 + $0= $9,200Common-size statement value of EBIT = EBIT / Sales= $9,200 / $78,400= 0.1175= 11.75%= 38.08% (rounded to two decimal places)

Southern Markets Has Sales of $78,400,net Income of $2,400,costs of Goods