Scribd
Upload
67 views2 pages

Income Statement

Revenue increased to $9 million in years 2-6. Gross profit was $2.375 million with EBIT of $1.575 million after deducting fixed costs of $1 million. Tax of 40% resulted in earnings after tax of $1.025 million with additional cash flow of $800,000 from depreciation. Cash flow was $1.825 million per year. In year 7, revenue remained at $9 million but scrap sales provided an additional $2 million in cash flow for a total of $3.825 million that year.

Uploaded by

awaischeema
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
67 views2 pages

Income Statement

Revenue increased to $9 million in years 2-6. Gross profit was $2.375 million with EBIT of $1.575 million after deducting fixed costs of $1 million. Tax of 40% resulted in earnings after tax of $1.025 million with additional cash flow of $800,000 from depreciation. Cash flow was $1.825 million per year. In year 7, revenue remained at $9 million but scrap sales provided an additional $2 million in cash flow for a total of $3.825 million that year.

Uploaded by

awaischeema
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 2

income statement

Year 1
Revenue (7800×1000) 9000000 (9000×1000)
Less- Variable Cost (7800×625) 5625000 (9000×625)
Less- Fixed Cost 1000000
Gross profit 2375000
Less- Depreciation 800000
EBIT 1575000
Less- Tax 40% 630000 370000 630000
EAT 1205000
+ Dep 800000
Cash flow 2005000

1 2005000 1822727.27272727
2 1825000 1508264.46280992
3 1825000 1371149.51164538
4 1825000 1246499.55604125
5 1825000 1133181.41458296
6 1825000 1030164.92234814
7 3825000 1962829.80223245
10074816.9423874
7000000
3074816.94238738
1211818
1136364
1033058
939144
853767
776152
1731909
7682212
statement
Year 2,3,4,5,6 Year 7
9000000 9000000
5625000 5625000
800000 800000
2575000 2575000
1000000 1000000
1575000 1575000
550000 550000
1025000 1025000
800000 800000
1825000 1825000
Scrap 2000000
cash flow year 7 3825000

You might also like