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.