contestada

Given the following information for Sookie’s Cookies Co., calculate the depreciation expense: sales = $87,143; costs = $62,695; addition to retained earnings = $1,398; dividends paid = $211; interest expense = $975; tax rate = 27 percent. (Hint: Build the Income Statement and fill in the missing pieces until you get to the depreciation expense. You may have to work from bottom up.)

Respuesta :

Tundexi

Answer:

Net earnings = Dividends Paid + Retained earnings

Net earnings = $211 + $1,398

Net earnings = $1,609

Earnings before tax (EBT) = Net earnings / (1-t)

Earnings before tax (EBT) = $1,609 / (1 - 27%)

Earnings before tax (EBT) = $2,204.11

Earnings before interest and tax (EBIT) = EBT + Interest paid

Earnings before interest and tax (EBIT) =  $2,204.11 + $975

Earnings before interest and tax (EBIT) = $3,179.11

Gross Profit / EBITDA = Sales - Costs

Gross Profit / EBITDA = $87,143 - $62,695

Gross Profit / EBITDA = $24,448

Depreciation = EBITDA - EBIT

Depreciation = $24,448 - $3,179.11

Depreciation = $21,268.89

Otras preguntas