Question

During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards’ Net Income in 2015?

Answer 1

Explanation:

Net income can be computed as:

EBIT = EBITDA - Depreciation and Amortization

= $1,000 -$200 = $800

EBT = EBIT - Interest Expense

= $800 - $100 = $700

Net Income = EBT -Tax Expense

= $700 - $50 = $650