A Firm Reports the Following Income Statement Items: Sales of $60,550,000;

question 64

Multiple Choice

A firm reports the following income statement items: sales of $60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold $34,025,000; and interest expense of $750,000.What is the amount of the firm's EBIT?

• A)$18,154,000
• B)$14,935,000
• C)$16,410,000
• D)$7,775,000

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Definitions:

Market Interest Rates

The prevailing rate of interest available in the marketplace for securities, loans, and deposits, determined by supply and demand dynamics.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the nominal value of a security.

Semi-Annual Interest

Interest that is calculated and paid twice a year, commonly found in bonds and certain types of loans.

Coupon Rate

Interest yielded on a bond each year, displayed as a percentage of its face value.