At the operating breakeven point, ... equals zero. O a. variable cost O b. fixed cost O c. earnings before interest and tax (EBIT) O d. net profit after tax
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- Gross profit is equal to Select one: a. revenues - expenses b. sales - cost of goods sold c. profits plus depreciation d. earnings before taxes minus taxes payableourses irst exar Time lef Profitability refers to Select one: O a. Earnings after interest and tax O b, Earnings before interest and tax O C. Sales of products and services O d. None of the options O e. Cost of products and services NexWhich of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPS
- Based on the above, what is the following: (e) Gross profit rate %The numerator of the return on total assets is a. net income b. net income plus tax expense c. net income plus interest expense d. net income minus preferred dividendsNet Income is calculated as follows: NI = NII- Burden – PL - + SG-T Where, bank burden (non-interest expense < non-interest Income). Select one: O True O False Next p
- Earnings before interest and taxes are positive above the operating breakeven point, and a loss occurs below it. true or false7. Profit for the objective of calculating a ratio may be taken as * a) Profit before tax but after interest b) Profit before interest and tax c) Profit after interest and tax d) All of the aboveEBIT is Select one: O a. equity before tax and interest O b. gross profit O c. net profit O d. EBT plus interest Clear my choice
- The term ‘Operating Profit’ means profit before _____ a. Interest b. Tax c. Interest and tax d. Interest or taxTRUE OR FALSE?In computing for the comprehensive income, the revaluation surplus will be deducted from the net income.Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = $ 840 Jan. 1 Beginning inventory Jan. 10 Sales 100 units @ $ 15 Jan. 20 Purchase 60 units @ $5.00 = Jan. 25 Sales 80 units @ $15 Jan. 30 Purchase 180 units @ $4.50 = 380 units Totals Sales Cost of goods sold Gross profit The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Expenses Income before taxes Income tax expense Net income Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,250 and that the applicable income tax rate is 40%. (Round your…