The following question(s) refer to the year-end account balances for Jensen Syst
ID: 2812330 • Letter: T
Question
The following question(s) refer to the year-end account balances for Jensen Systems, Inc. The accounts are listed not in the order they appear on the financial statements. The applicable tax rate is 40%.
Income Statement
340
20
115
600
???
Balance Sheet
35
65
30
(175)
35
120
390
135
200
65
1. What was the company's earnings before interest and taxes (EBIT)?
2. What is the company's tax liability?
3. What was the company's Net Income?
4.What is the company's Total Assets?
Cost of Goods Sold340
Interest Expense20
Operating Expense (excluding depreciation)115
Sales600
Tax???
Explanation / Answer
1) EBIT:
EBIT=sales-COGS-Operating expenses
Option B is correct
2)
Option d is correct
3)
Option c is correct
4)
Hence option d is correct
Sales $ 600.00 COGS $ 340.00 Op Ex $ 115.00 EBIT $ 145.00Related Questions
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