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Formatting Alignment Number TY WARNING Automatic update of links has been disabled Enable Content Income statement: Fo r its $362,450.20, zero interest expense, and cash flow to investors from operating activity of $348,461.25

Solution

To be calculated:

Net income after taxes

Given values:

EBITDA = $512,725.20

EBIT = $362,450.20

Interest Expense = $0

Cash flow from operating activity (CFOA) = $348,461.25

Solution:

Net income can be calculated as;

Net Income = CFOA - Depreciation Expense

Depreciation Expense can be calculated as;

Depreciation Expense = EBITDA - EBIT

Depreciation Expense = $512,725.20 - $362,450.20

Depreciation Expense = $150,275

Now, Net Income = CFOA - Depreciation Expense

Net Income = $348,461.25 - $150,275

Net Income = $198,186.25

Answer - Firm’s net income after taxes is $198,186.25