Need help with this general accounting question Brookstone Electronics has the following information for theyear:Depreciation (percent of sales): 3%Revenues: $80,000Gross Profit: $30,000PP&E: $50,000What is the depreciation expense based on the informationprovided?a. $2,400b. $2,000c. $2,100d. $1,500

Step 1: Define Depreciation ExpenseDepreciation Expense is the portion of the cost of a tangible…

Answered: Brookstone Electronics has the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Coolidge Cola is forecasting the following income statement: Sales 30,000,000Operating costs excluding depreciation and amortization (20,000,000)EBITDA 10,000,000Depreciation and amortization (5,000,000)Operating income (EBIT) 5,000,000Interest expense (2,000,000)Taxable income (EBT) 3,000,000Taxes (40%) (1,200,000)Net income 1,800,000 Assume that, with the exception of depreciation, all other non-cash revenues and expenses…
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Brookstone Electronics has the following information for the year: Depreciation (percent of sales): 3% Revenues: $80,000 Gross Profit: $30,000 PP&E: $50,000 What is the depreciation expense based on the information provided? a. $2,400 b. $2,000 c. $2,100 d. $1,500