Question

Construct an Income Statement for XXX, for the year ending December 31, 2019, given the following information.

Total Sales was $465 million. Other Expenses (excluding Depreciation & Amortization) was $20.3 million. EBITDA was 25% of Sales. Depreciation & Amortization was 4.6% of Gross Fixed Assets. Interest Expense was 8.4% of Long-Term Debt. The corporate tax rate for EVC Manufacturing is 20.5%. Net Fixed Assets at the start of 2019 was $287 million. Accumulated Depreciation at the start of 2019 was $67 million. No new fixed assets were acquired during 2019, and none were sold or retired. Long-Term Debt on December 31, 2018 totaled $322 million. The next principal payment will take place on December 31, 2021. No additional interest-bearing debt was incurred during 2019.

Answer 1

Income Statement of XXX year ending 2019
Particulars	Amount(in millions)
Sales	$465.00
Less:
Operating expenses($465-$20.3-$116.25)	$328.45
Other expenses	$20.30
EBITDA($465*25%)	$116.25
Depreciation [($287+$67)*4.6%]	$16.28
Earnings after Depreciation	$99.97
Interest($322*8.4%)	$27.05
Earnings before tax	$72.92
Tax @ 20.5%	$14.95
Earnings after tax	$57.97