Multiple Choice Question

Net income that is not paid out as dividends and hence reinvested into the company is called

net profits

non$-$current liabilities

retained earnings

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Calculate the EBIT $($Operating Income$)$ for a firm with $$4$ million total revenues, $$3\mathrm{.}5$ million cost of goods sold, $$500,000$ depreciation expense, and

$$120,000$ interest expense.

Multiple Choice

$$500,000$

$$380,000$

$$0$

$($$$120,000)$