Question

3. Andrea Aerospace's 2018 and 2017 balance sheets (in thousands of dollars) are shown. Andrea Aerospace December 31 Balance Sheets (in thousands of dollars) 2018 2017 s Assets Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets 102.850 103,365 38.444 244,659 67,165 311.824 s $ 89.725 85.527 34,982 $ 210.234 42,436 $ 252.670 $ Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earings Total common equity Total liabilities and equity $ 30,761 $ 23,109 30,477 22.656 16,717 14,217 $ 77,955 $ 59,982 76,264 63,914 $ 154,219 $ 123.896 100,000 90,000 57,605 38,774 $ 157.605 $ 128,774 $ 311,824 $ 252,670 Sales for 2018 were $410,707,362.50, Cost of goods sold (COGS) was 11% of sales, and Selling, General, and Administrative (SG&A) expenses were $500,000. Furthermore, depreciation and amortization were 44% of net fixed assets, interest was $234,000,000. The corporate tax was $131,000,000. Given this information, construct the Andrea Aerospace's 2018 Income statement. Andrea Aerospace Income Statement (in thousands of dollars) 2018 Sales Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Depreciation and amortization EBIT Interest expense EBT Taxes Net Income

Answer 1

Andrea Aerospace Income Statement for the year 2018
	$ in thousands
Sales	410,707
Less: Cost of Goods Sold (410,707*11%)	(45,178)
Gross Profit	365,529
Less: Selling, General and Administrative expense	(500)
Less: Depreciation and Amortization (67,165*44%)	(29,553)
EBIT	335,476
Less:Interest	(234,000)
EBT	101,476
Less: Tax	131,000
NET LOSS	(29,524)

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