Exam 3: Understanding Financial Statements,taxes and Cash Flows

Your firm has the following income statement items: sales of $50,250,000;income tax of $1,744,000;operating expenses of $8,750,000;cost of goods sold of $35,025,000;and interest expense of $750,000.What is the amount of the firm's net income?

Your firm has the following income statement items: sales of $50,250,000;income tax of $1,744,000;operating expenses of $10,115,000;cost of goods sold of $35,025,000;and interest expense of $750,000.What is the amount of the firm's income before tax?

Gross plant and equipment minus accumulated depreciation represents the fair market value of a company's fixed assets.

Your firm has the following income statement items: sales of $50,250,000;income tax of $1,744,000;operating expenses of $10,115,000;cost of goods sold of $35,025,000;and interest expense of $750,000.What is the amount of the firm's EBIT?

Under current accounting rules,plant and equipment appear on a company's balance sheet valued at replacement value.

Which of the following would NOT be included as an asset on a corporate balance sheet?

Firms should compare their gross,operating and net profit margins to past years and other companies in order to