Question
Accounts from the Perril Company's Income Statement, including some accounts and from the Perril Company's Balance Sheet, for the year ending December 31, 2021 are
Accounts from the Perril Company's Income Statement, including some accounts and from the Perril Company's Balance Sheet, for the year ending December 31, 2021 are listed below:
• Additional paid in capital = $1,920
• Beginning inventory = $640
Depreciation = $1,090
Dividends paid = $1,250
Ending inventory = $550
Gross sales = $19,680
Interest expense = $660
Notes payable = $2,920
Operating expenses (excluding depreciation) = $3,200
• Purchases = $5,030
Returns and allowances = $250
Perril Company has a tax rate of 15 percent.
Using the data above, compute what Perril Company (a retail clothing store) reported as Operating Profit (i.e., EBIT) on its 2021 income statement.
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