Question

Byron Books Inc. recently reported $14 million of net income. Its EBIT was $32.2 million, and its tax rate was 30%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $14 million of net income by (1 - T) = 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.

Answer 1

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Home ert Page Layout Formulas Data Review V 義Cut ta copy." Format Painter Add-Ins 短 Σ AutoSum , General Fill В า 프. m. a-Δ. Ξミ 迣锂函Merge & Center. $, % , 弼皛Conditional Format. Cell. Insert Delete Format Paste Sort &Find & Formatting as Table Styles ClearFilter Select Clipboard Font Styles Cells dting Alignment BY223 BX BY BZ CA св CD CE CF CG CH 213 214 215 216 217 218 219 220 221 EBIT INTEREST EBT TAXES NET INCOME 32.2 GIVEN 12.2 STEP 3 20 STEP 1 6 STEP 2 14 GIVEN 32.2-20] [14/(1-0.3)] [20-6] LESS INTEREST EXPENSES 12.2 MILLION ANSWER: INTEREST EXPENSES 12200000 223 224 225 226 227 228 229 230 231 T floatB-S profit l de ROE, BV MV ratioVARIANCE BEP, OL FL ratios loss SALES BUDGET DIFF ANALYSIS overhead ORDER BOOK MM : 05:14