Question 1.

Sales ____________

Operating Costs ____________

Depreciation and Amortization ____________

Operating Income (EBIT) ____________

Interest Expense ____________

Earnings Before Taxes ____________

Tax Expense (40%) ____________

Net Income ____________

Norris Automotive's operating income for the year was $900,000. Their net profit margin was 2.25% and their operating profit margin was 4.25%. Their total taxes amount to 40%. Depreciation was 10% of net fixed assets which totaled $1,250,000. Complete their Income statement with the template given. Hint: Think about what parts of the income statement could come from knowing NPM and OPM ratios.