The formulas used in the calculations are:
\[ \text{Gross Profit} = \text{Revenue} - \text{COGS} \]
\[ \text{Operating Expenses} = \text{SG&A} + \text{D&A} \]
\[ \text{EBT} = \text{Gross Profit} - \text{Operating Expenses} - \text{Interest Expense} + \text{Other Income} \]
This calculator computes the Earnings Before Tax (EBT) based on the input values of revenue, cost of goods sold (COGS), selling, general, and administrative expenses (SG&A), depreciation and amortization (D&A), interest expense, and other income. EBT measures a company's profitability before tax expenses are deducted.
Let's assume the following:
Calculate the gross profit:
\[ \text{Gross Profit} = 1,000,000 - 300,000 = 700,000 \]
Calculate the operating expenses:
\[ \text{Operating Expenses} = 150,000 + 150,000 = 300,000 \]
Calculate the earnings before tax (EBT):
\[ \text{EBT} = 700,000 - 300,000 - 200,000 + 100,000 = 300,000 \]
Therefore, the EBT is $300,000.
