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Calculate cost of goods sold given the following: sales = $67, depreciation = 12.8, interest expense...

  1. Calculate cost of goods sold given the following: sales = $67, depreciation = 12.8, interest expense = $17, net income = $4.4 and a tax rate of 21%.
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Answer #1

Net Income=Sales -COGS(Cost of Goods Sold)-Fixed expense(depreciation here)-Interest-Tax

Sales=$67 Depreciation=12.8 Interest =17 net income =4.4 Tax rate =21%

The Earnings Before Tax =Net income/1-tax rate

EBT=4.4/.79 =5.56962

EBT+Interest =EBIT

So EBIT=5.56962+17=22.56962

Gross Profit =EBIT+Fixed operating Cost

So Gross Profit=22.56962+12.8=35.36962

Sales-COGS =Gross Profit

Let COGS be x

Sales =67

So 67-x=35.36962

COGS(Cost of Goods Sold)=67-35.36962=$31.63038 that's $31.63(rounded to two decimals)

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