A company buys 2mm items for $3 each and sells 1mm of those items during a year for $6 each. Marketing expenses are $200k for the year. The company has $3mm of debt with a 5% interest rate. Its depreciation expense for the year is $100k. the company’s income tax rate is 30%. Create an income statement for the company. Also what is the EBITDA?
Income Statement | Amount($) | |
Sales-1mm*$ 6 each | 6,000,000 | |
Less- | ||
Cost of goods sold | ||
Opening Inventory | - | |
Purchased | 6,000,000 | |
Closing | 3,000,000 | |
Inventory Used | 3,000,000 | |
Gross margin(Sales-Inventory used) | 3,000,000 | |
Marketing exp. | (200,000) | |
EBITDA | 2,800,000 | |
Depreciation | (100,000) | |
Interest | ||
3mm*5% | (150,000) | |
Earning after interest & depreciation | 2,550,000 | |
Taxes@30% | (765,000) | |
EAT | 1,785,000 |
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