Use the data from the financial statements of a company shown below.

Income Statement year ending 2016
Sales Revenues	$500,000
Cost of goods sold	355,000
Fixed costs	58,000
Selling, general, and administrative expenses	25,334
Depreciation	20,000
EBIT
Interest expense	0
Taxable Income
Taxes
Net Income	25,000
Tax rate	40%
Dividends paid	5,000

Partial Balance Sheet 12/31/2015
ASSETS		LIABILITIES
Current Assets		Current Liabilities
Cash	15,000	Notes payable	10,000
Accounts receivable	35,000	Accounts payable	17,000
Inventories	25,000	Total current liabilities
Total current assets		Long-term debt	118,000
		Total Liabilities
Gross Fixed assets		OWNER'S EQUITY
Accumulated depreciation	100,000	Retained earnings (1)	70,000
Net Fixed assets		Common stock	200,000
Intangible assets	0	Total owner's equity
TOTAL ASSETS		TOTAL LIABILITIES & OWNER’S EQUITY

Partial Balance Sheet 12/31/2016
ASSETS		LIABILITIES
Current Assets		Current Liabilities
Cash	2,000	Notes payable	20,000
Accounts receivable	20,000	Accounts payable	20,000
Inventories	28,000	Total current liabilities
Total current assets		Long-term debt
Gross Fixed assets		Total liabilities	60,000
Accumulated depreciation		OWNERS’ EQUITY
Net Fixed Assets		Retained earnings
Intangible assets	0	Common stock	200,000
Total long-term assets		Total owner's equity
TOTAL ASSETS		TOTAL LIABILITIES & OWNER’S EQUITY

1. What is the EBIT in 2016?

2. What is the amount for Total Liabilities & Owner's Equity for 2015?

3. What is the change in Retained Earnings from 2015 to 2016?

4. What is the amount for Retained Earnings in the Balance Sheet in 2016?

5. What is the amount for Net Fixed Assets in the Balance Sheet in 2016?

6. What is the amount of Total Owner's Equity in the Balance Sheet for 2016?

7. What is the amount of Long-Term Debt on the Balance Sheet in 2016?

Answer rating: 100% (QA)

Answer 1 EBIT Earnings Before Interest and Taxes in 2016 can be calculated as follows EBIT Sales Rev... View the full answer