Question: DEF Tech Inc. provided the following financial data for the year 2023: Revenue: $5,000,000 Cost of Goods Sold: $3,000,000 Administrative Expenses: $1,000,000 Depreciation: $200,000 Interest:

DEF Tech Inc. provided the following financial data for the year 2023:

  • Revenue: $5,000,000
  • Cost of Goods Sold: $3,000,000
  • Administrative Expenses: $1,000,000
  • Depreciation: $200,000
  • Interest: $100,000
  • Tax Rate: 30%

Requirements:

  • Prepare an Income Statement.
  • Calculate the Earnings Before Interest and Taxes (EBIT).
  • Compute the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
  • Determine the Net Income.
  • Calculate the Effective Tax Rate.

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