Question

The fitness studio, incorporated's income statement lists the following income and expenses: ebitda = 672,000, ebit =540,000, interest expense = 80,000, and net income =446,000. Calculate the taxes reported on the income statement?

Answer 1

The taxes reported on the income statement can be calculated by subtracting the net income from the EBIT. In this case, the taxes reported are $94,000.

The taxes reported on the income statement can be calculated by subtracting the net income from the EBIT. EBIT stands for Earnings Before Interest and Taxes, so by subtracting the net income from the EBIT, we can find the taxes paid by the company.

Here's the calculation:

1. EBIT - Net Income = Taxes
2. 540,000 - 446,000 = 94,000

Therefore, the taxes reported on the income statement are $94,000.