Question

If Cleveland Motors Had an EBIT of $22,977,400, Interest of $7,350,300 and is taxed at an average rate of 32% what is their Net Income?

Answer 1

	CLEVELAND MOTORS
	CALCULATION OF NET INCOME
	Particulars	AMOUNT
	Earning Before interest and Taxes(EBIT)	$        2,29,77,400
	Less: Interest Expenses	$            73,50,300
	Earning befor taxes	$        1,56,27,100
	Less: Taxation @ 32%	$            50,00,672
	Net Income	$        1,06,26,428
	Answer = Net Income =	$        1,06,26,428