Question

Suppose Company ABC has revenues of $200 million, cost of goods sold of $350 million, and depreciation of $50 million. What is the company's EBIT? Multiple Choice $200 million $0 $200 million Not determined

Answer 1

the EBIT will be of minus 200 millons -$200,000,000

Step-by-step explanation:

EBIT Will be the Earning before Interest and Taxes

Assuming there is no other operating expense like rent, the EBIT

will be 200 revenues

-350 cost of goods sold

-50 depreciation

-----------------------------

-200 EBIT

Notice it is negative so it is losses not earnings in this case.