Question

Suppose Dansko Integrated has the following revenue and expenses for 2019:

Revenues of $8,500,000
Cost of Goods Sold of $2,550,000
Depreciation Expenses of $800,000
Income Taxes of $1,144,000
Interest Expenses of $90,000
Other Expenses of $500,000
Sales, General, & Administrative Expenses of $1,700,000

Create an income statement with amounts in thousands

What is the value of Earnings Before Interest & Taxes?

Please specify your answer in the same units as the income statement.

Answer 1

Income statement of Dansko Integrated for 2019:

Particulars	Amount	Amount in thousands
Revenues	$8,500,000	$8,500	A
Cost of Goods Sold	$2,550,000	$2,550	B
Gross Margin	$5,950,000	$5,950	C= A-B
Operating expenses
Sales, General, & Administrative Expenses	$1,700,000	$1,700	D
Other Expenses	$500,000	$500	E
Depreciation Expenses	$800,000	$800	F
Total operating expenses	$3,000,000	$3,000	G=D+E+F
Operating income/ Earnings before interest and tax	$2,950,000	$2,950	H=C-G
Interest Expenses	$90,000	$90	I
Earnings before tax	$2,860,000	$2,860	J=H-I
Income Taxes	$1,144,000	$1,144	K
Earnings after tax	$1,716,000	$1,716	J-K

Earnings before interest and tax for 2019 will be 2950 thousands.