Aurora Lighting Ltd has the following income statement items: sales of $12 000 000; cost of goods sold of $4 000 000; other operating expenses of $1 500 000; and interest expense of $50 000.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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Aurora Lighting Ltd has the following income statement items: sales of $12 000 000; cost of goods sold of $4
000 000; other operating expenses of $1 500 000; and interest expense of $50 000.
1. Calculate gross profit margin of the company?
2. Calculate earnings before interest and tax (EBIT) of the company?
Transcribed Image Text:Aurora Lighting Ltd has the following income statement items: sales of $12 000 000; cost of goods sold of $4 000 000; other operating expenses of $1 500 000; and interest expense of $50 000. 1. Calculate gross profit margin of the company? 2. Calculate earnings before interest and tax (EBIT) of the company?
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