Question

lack River Adventures has net income of $1,918, interest expense of $915, sales of $20,450, and costs of 80, What is the amount of the depreciation expense if the firms tax rate is 36 percent?
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Answer #1
Sales 20450
Costs 10980
EBITDA 9470
Depreciation 5558 [9470-5558]
EBIT 3912 [2997+915]
Interest expense 915
EBT 2997
Tax at 36% 1079 [1918*36%/64%]
Net Income 1918
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