3.

Linda's Lights balance sheet info for the beginning of 2020:

Owners' Equity27 million

Bank Loan 10 million, 4.5% interest rate

Fixed Assets 10 million

Inventory 23 million

Cash 4 million

Here are info for 2020:

Purchased 220 thousand lamps for $100 each, sold them for $125 each

Incurred additional operating costs of $2 million

Purchased 5 trucks for $100,000 each

Profits tax15%

Dividend payout ratio 30%

Q: What is EBIT?