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Explain with details The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $11,750 million in the first
Explain with details
The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $11,750 million in the first year and $18,796 million in the second year. Common equity was equal to $6,250 million in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new stock in the second year Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Yar 1 5,000 1,040 200 1,240 3,760 301 3,459 1,384 2,075 Net Sales 6,350 1,120 318 1,438 4,912 663 4,249 1,700 2,549 Operating costs except depreciation and amortization Depreciation and amortization Total Operating Costs Operating Income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net IncomeStep by Step Solution
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