A firm reports the following income statement items: sales of $60,550,

A firm reports the following income statement items: sales of $60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold $34,025,000; and interest expense of $750,000. What is the amount of the firm’s EBIT?

A) $18,154,000
B) $14,935,000
C) $16,410,000
D) $7,775,000

ANSWER

C
Explanation: C) EBIT = Sales – COGS – Operating Expenses = $60,550,000 – $34,025,000 – $10,115,000 = $16,410,000.