- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
Earnings Before Income Taxes
Earnings Before Income Taxes appear on the Income Statement and is calculated by subtracting "Sales" from "Cost of Goods Sold" & "Operating Expenses". Below summarizes Murray's forecasted Earnings Before Income Taxes for the business years ending December 31, 200X and 200Y.
|Less: Forecasted Cost of Goods Sold||$ 12,000||$ 26,141|
|Less: Forecasted Operating Expenses||$ 84,171||$141,098|
|Earning Before Income Taxes||$ 7,829||$ 24,761|
As you can see, Murray's 200X Forecasted Earnings Before Income Taxes is $7,829. This figure will be later used to determine Murray's 200X Income Tax obligation. Also shown in the above chart, Murray's 200Y Forecasted Earnings Before Income Taxes is $24,761. Again, this figure will be later used to determine Murray's 200Y Income Tax obligation.