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A firm has the following data. Calculate the Earnings Before Interest and Taxes (EBIT), Net Income, and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

A firm has the following data. Calculate the Earnings Before Interest and Taxes (EBIT), Net Income, and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Data:

  • Revenue: $150,000
  • Cost of Goods Sold: $70,000
  • Operating Expenses: $40,000
  • Depreciation: $10,000
  • Interest Expense: $5,000
  • Tax Rate: 25%

Requirements:

  1. Calculate EBIT.
  2. Calculate Net Income.
  3. Calculate EBITDA.
  4. Analyze the firm’s profitability using the calculated values.

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