Kwok enterprises has the following income statement. how much after-tax operating income does the firm have? sales $2,050 costs 1,400 depreciation 250 ebit $400 interest expense 70 ebt $330 taxes (25%) 82.50 net income $247.50

Sales                                  2,050

Costs                                  (1,400)

Depreciation                      (250)

EBIT                                     400

Interest expense                 (70)

Earnings before tax             330

Tax @ 25%                           (82.50)

After-tax operating income 247.50

Explanation:

The after-tax operating income equals sales minus costs minus depreciation minus interest expense minus tax.