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19 June, 12:54

Kwok Enterprises has the following income statement. How much after-tax operating income does the firm have? Sales $2,050 Costs 1,400 Depreciation 250 EBIT $400 Interest expense 70 EBT $330 Taxes (25%) 82.50 Net income $247.50

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  1. 19 June, 13:14
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    Sales 2,050

    Costs (1,400)

    Depreciation (250)

    EBIT 400

    Interest expense (70)

    Earnings before tax 330

    Tax @ 25% (82.50)

    After-tax operating income 247.50

    Explanation:

    The after-tax operating income equals sales minus costs minus depreciation minus interest expense minus tax.
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