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    kfreeman1's Avatar
    kfreeman1 Posts: 1, Reputation: 1
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    #1

    Apr 26, 2010, 07:13 AM
    Interest Expense
    INCOME STATEMENT: Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Apr 26, 2010, 07:54 AM

    Take your EBIT * 40% then deduct this number from EBIT and the difference from this number and Net Income is your interest expense amount.
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