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8 January, 07:29

Wilma's Widgets had net sales of $ 20,882,696 in 2010. The cost of goods sold was $ 13,765,751, operating expenses (excluding depreciation) were $ 2,014,441, interest expenses were $ 663,090, depreciation expense was $ 1,221,755, and dividends paid were $ 452,135. The firm's tax rate is 35 percent. What did Wilma's Widgets report as earnings before interest and taxes (i. e., operating profit) in 2010

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  1. 8 January, 07:44
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    Wilma's Widgets will report $3,880,749.00 as earnings before interest and taxes (i. e., operating profit) in 2010

    Explanation:

    Earnings before interest and tax = net sales-cost of goods sold-operating expenses-depreciation

    net sales is $20,882,696

    cost of goods sold is $13,765,751

    operating expenses are $2,014,441

    depreciation is $1,221,755

    earnings before interest and tax=$20,882,696 - $13,765,751 - $2,014,441-$1,221,755=$3,880,749.00
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