Calculate EBIT and Net Income of the year

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Reference no: EM132997200

Questions -

Q1: If net revenue equals $50,000, cost of sales $20,000 and operating expenses $10,000, then what does the gross profit come to?

Q2: Aaron owns a database and server technology company that he runs out of his house. He manages data, security, and servers for many different medical companies that require strict compliance with federal rules. As such, Aaron is able to make large amounts of revenue while keeping his expenses low. Here is a list of his income statement items for the year.

Revenues $200,000

Computer expenses $10,000

Salaries $50,000

Utilities $5,000

Taxes $2,500

Calculate EBIT and Net Income of the year.

Reference no: EM132997200

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