Wilma's Widgets had net sales of $ 20,882,696 in 2010. The cost of goods sold was $ 13,765,751 , operating expenses (excluding depreciation) were $ 2,014,441 , interest expenses were $ 663,090 , depreciation expense was $ 1,221,755 , and dividends paid were $ 452,135 . The firm's tax rate is 35 percent. What did Wilma's Widgets report as earnings before interest and taxes (i. e., operating profit) in 2010

Wilma's Widgets will report $3,880,749.00     as earnings before interest and taxes (i.e., operating profit) in 2010

Explanation:

Earnings before interest and tax= net sales-cost of goods sold-operating expenses-depreciation

net sales is $20,882,696

cost of goods sold is $13,765,751

operating expenses  are $2,014,441

depreciation is $1,221,755

earnings before interest and tax=$20,882,696- $13,765,751- $2,014,441-$1,221,755=$3,880,749.00  

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