Financial Management Solution to problem 2-4B

Sales                                                           $  7000,000
(-) (CGS)                                                        (4000,000)

Grand Profit                                                    3000,000
EBITD

(-) Opearting Expense                                   2600,000

EBIT                                                                400,000
(-) (Interest)                                                       (40,000)

EBT                                                                   360,000


(-) (Tax)                                                            122,400

EAT                                                                  237,600

TAX Calculation

50,000 x 15%=7500
25000 x 25%=6250
25000 x 34%=8500
235000 x 39%= 91,650
                                                                         360,000
335,000                                                           (335,000)

25,000 x 34%=8500                                         25,000
                       =122,400
                                                                                   
400,000 x 34%=136000 400,000