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A. Income Statement Items You have the following data (in millions): Sales = $47

ID: 2825055 • Letter: A

Question

A.

Income Statement Items You have the following data (in millions): Sales = $47, Interest Expense = $10, Cost of Goods Sold = $21, Depreciation Expense = $2, Selling, General and Administrative Expenses = $3, Taxes = $4. The firm's EBIT is ________ million and Net Income is ________ million.

$21; $7

$23; $7

$42; $11

$26; $11

B.

Market Capitalization You find the following data on an Internet stock site:


In a common size income statement the cost of goods sold account value would be ________.

62%

14%

72%

55%

Income Statement Items You have the following data (in millions): Sales = $47, Interest Expense = $10, Cost of Goods Sold = $21, Depreciation Expense = $2, Selling, General and Administrative Expenses = $3, Taxes = $4. The firm's EBIT is ________ million and Net Income is ________ million.

Explanation / Answer

1-

Income Statement

sales

47

cost of goods sold

21

gross profit

26

Depreciation

2

selling and administrative expese

3

EBIT

21

less interest

10

EBT

11

tax

4

Net income

7

2-

cost of goods sold account in common size statement

(cost of goods sold/sales)

72%

1-

Income Statement

sales

47

cost of goods sold

21

gross profit

26

Depreciation

2

selling and administrative expese

3

EBIT

21

less interest

10

EBT

11

tax

4

Net income

7

2-

cost of goods sold account in common size statement

(cost of goods sold/sales)

72%

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