2. Net income = (sales - costs - depreciation - interest)*(1-tax rate)
Sales | 609,600.00 |
less: costs | 548,150.00 |
EBITDA | 61,450.00 |
less: depreciation | 35,100.00 |
EBIT | 26,350.00 |
less: interest | 12,400.00 |
PBT | 13,950.00 |
less: tax @ 28% | 3,906.00 |
Net income | 10,044.00 |
Thus net income = $10,044
3. We will first compute net income earned during the year.
Sales | 93,490.00 |
less: costs | 68,407.00 |
EBITDA | 25,083.00 |
less: depreciation | 8,200.00 |
EBIT | 16,883.00 |
less: interest | 478.00 |
PBT | 16,405.00 |
less: tax @ 34% | 5,577.70 |
Net income | 10,827.30 |
Retained earnings balance at the end of the year = opening balance+net income - dividends
= 18670+10827.30-950
= $28,547.30
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