Instructions State the Missing Items Identified by

question 216

Essay

Instructions
State the missing items identified by ?.
1. Gross profit - Operating expenses = ?
2. Cost of goods sold + Gross profit on sales = ?
3. Sales Revenue - (? + ?) = Net sales
4. Income from operations + ? - ? = Net income
5. Net sales - Cost of goods sold = ?

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Definitions:

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Debt/Assets Ratio

A financial ratio that indicates the proportion of a company's assets that are financed by debt.

Common Equity

The amount of ownership interest that is common stockholders have in a company, reflecting their equity stake.

Borrow

The act of receiving funds from a lender with the agreement to return the principal amount along with interest or other charges, if applicable.