AuthorTopic: stuck on a EBIT calculation
Raymer
@2014-11-12 17:01:25
Ok I'm stuck on a very easy problem

Interest Expense=401
Pretax Income=1789
Net Income=930
Capitalized Interest=141
Amortization of Capitalized interest=47

I'm stuck trying to figure out how they got 2237 for EBIT. Assume that the company expensed interest as incurred.
cfa84
@2014-11-22 09:36:21
you have the pretax income of 1789 and add the interest expense 401 plus the capitalized interest for the year 1789+401+47=2237

pretax income has had interest expenses deducted already

CFA Discussion Topic: stuck on a EBIT calculation

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