Financial Managemnt solution to problem 2-3B

 
Income Statement


Sales                                                                                  $ 3500,000
(CGS)                                                                                   (2000,000)
Grand profit                                                                          1500,000

EBITD
(-)(Operating Expense)    $ 500,000
Depreciation Expense      $100,000                                     (600,000)

EBIT                                                                                     900,000

(-)(Interest)                                                                           (165,000)
Earning b4 Tax(EBT)                                                           735,000
(-) (Tax)                                                                                 249,900                    
EAT/Earning After Tax                                                     $  485,100


TAX Calculation

50,000 x 15%=7500
25000 x 25%=6250
25000 x 34%=8500
235000 x 39%=91650                                               735,000
                                                                                    335,000
400,000 x 34%=136000                                             400,000
                         =$249,900