Question
The Lansing Lugnuts a minor league baseball team recently reported a net income of $4,000,000. Its Earnings Before Interest and Taxes (EBIT) was $7 million
The Lansing Lugnuts a minor league baseball team recently reported a net income of $4,000,000. Its Earnings Before Interest and Taxes (EBIT) was $7 million and its tax rate was 25%.
From this information is it True or False that Interest Expense for the year was $1,666.666.67?
(Hint: Write out the headings for an income statement and fill in the known values. Then divide net income by (1 T) = .75 to find the pretax income which is also known as Earnings Before Earnings and Taxes (EBT).
True
False
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Understanding Healthcare Financial Management
Authors: Louis C. Gapenski, George H. Pink
6th Edition
1567933629, 9781567933628
