Urgent Please

EBIT stands for "earnings before income and tax." The EBIT margin is EBIT divided by net revenue. Investors use EBIT margin to see how earnings of the company grow from year to year. Since EBIT does not include interest or tax, it shows how the firm operates. Interest has no bearing on the firm's operation and the effective tax rate can vary from year to year. Therefore, EBIT may be more accurate than net income in determining operational efficiency.

Instructions 1

Determine EBIT. Some companies will disclose EBIT in the notes to their financial statements. If the company does not disclose EBIT, then add back interest expense and tax expense from net income. These accounts are found on the income statement.

For instance, if a company has 500,000 of net income and pays 2,000 in interest expenses and 10,000 in taxes, its EBIT would equal 500,000, plus 2,000 plus 10,000, which is 512,000.

2. Determine the company's net revenue. This information is found on the company's income statement. For example, a company may have 900,000 of net revenue.

3. Divide EBIT by net revenue to determine EBIT margin. In the example above, 512,000 divided by 900,000 equals an EBIT margin of 0.5688, or 56.88 percent.

Thanks sir but could you please calculate EBIT on above income statement of company?