Skip to main content

Rao Construction recently reported $30.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million

Rao Construction recently reported $30.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 25%. What was Rao's operating income, or EBIT, in millions.

3 Answers

$14.4 million.Explanation:Since sales = $30.00 millionOperating costs excluding depreciation = $12.6 million Depreciation = $3.0 millionTherefore; Operating income (EBIT) = Net earnings - Operating costs - Depreciation = $30.00 - $12.6 - $3.0= $14.4 million.... Show More

Want to answer this question?

Join our community to share your knowledge!

Categories

Tags

Related Questions

5
Rap that starts with the Dukes of Hazzard theme? 10pts!?

What’s the rap that starts with the “Good Ole Boys”?

10
Rappers – Bloods or Crips?

What gang do these rappers/groups reside with Bloods or Crips?Westside Connection –N.W.A. –Mack 10 – Ice T –Ice Cube –B....

8
Rarefaction occurs only in a______wave.?

-longitudinal-transverse-sympathetic-forced **10 points for best answer!!

3
rate law, rate doubled..then?

2Mg + O2 => 2MgO k[Mg][O2]^2a)What would happen to the rate if Mg were doubled?b)What would happen to the rate if O2 wer...

3
Rate my short poem 1 to 10?

It’ll curl your toes / When they stick the swab / Up your nose.By OTTO1=sucks…10=fantastic!!* comments welcome, of cours...

3
RAW manhwa scans?

I don’t mind any kind of manhwa, i’m currently looking for a site where you can either download RAW manhwa scans or read...

2
Rays easily penetrate through the human body and require lead or several inches of concrete to prevent penetration.

Gamma rays easily penetrate through th e human body and require lead or several inches of concrete to prevent penetratio...

1
Rays from the sun are not considered matter true or false

Rays from the sun are not considered matter true or false