2. The income statement for Galati Company is as follows (in millions of dollars

Question

2. The income statement for Galati Company is as follows (in millions of dollars): Galati Company Income statement For the Year Ended December 31, 2017 $4,600 $2,456 Net Sales Operating Costs except depreciation and amortization Gross Profit Depreciation and amortization EBIT or operating profit Interest expenses $1120 $584 $400 Taxable income (EBT) Taxes (40%) Net Income Using the previous information, Galati company's gross profit is...,jand its operating profit is.... a. $284 and $384 respectively. b. $2,144 and $1,024 respectively. c. $1200 and $1284 respectively. d. none of the above. The balance sheet for Ingram Company is as follows (in millions of dollars): Financial Management Founda Last

Explanation / Answer

Answer is B.

Gross Profit = Net Sales - Operating Costs except Depreciation and Amortization
Gross Profit = $4,600 - $2,456
Gross Profit = $2,144

Operating Profit = Gross Profit - Depreciation and Amortization
Operating Profit = $2,144 - $1,120
Operating Profit = $1,024

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.