Finance

1 Last year Ebbets Industrues has sales totalling $479,500,000. There operating costs, which excluded depreciation were 82% of sales. Accoridng to the balance sheet net fixed assets were $72,000,000. Depreciation amounted to 12% of net fixed assets. Ebbets interest expenses were $7,775,000, and their the state-plus-federal corporate tax rate was 35%. Ebbets usually pays 25% of its net income in dividends. Given this information, construct Ebbets income statement. Also calculate total dividends and the addition to retained earnings, as well as the common income statement. The input information required for the problem is outlined in the "Key Input Data" section below. Using this data construct the income statement as well as the common income statement. 2019 Key Input Data for Ebbets Industries (Thousands of dollars) Sales Revenue Expenses (excluding depreciation) as a percent of sales Net fixed assest Depr. as a % of net fixed assets Tax rate Interest expense Dividend Payout Ratio $479,500 82.0% $72,000 12.0% 35.0% $7,775 25% 2019 Common Inc. St. Ebbets Industries: Income Statement (Thousands of dollars) Sales Operating costs excluding depreciation EBITDA Depreciation (Cumberland has no amortization charges) EBIT Interest expense EBT Taxes (35%) Net income Common dividends Addition to retained earnings 2 $