You are given the following information for Sookie’s Cookies Co.: sales = $51,200; costs = $39,600; addition to retained earnings = $2,320; dividends paid = $935; interest expense = $1,560; tax rate = 40 percent. (Enter your answer as directed, but do not round intermediate calculations.) Calculate the net income. Calculate the taxable income. Calculate the EBIT. Calculate the depreciation expense. Solution a.Net Income = 2320 + 935 = 3255 b. Taxbale Income (X): X*(1-0.4) = 3255 , So X = 3255/0.6 = 5,425. Hence taxable income = $5,425 c.So EBIT = Sales - Costs = 51,200 - 39,600 = $11,600 d.Derirciation Expense : 11600 -1560 - Dep. Expense = 5425 . Hence depreciation expense = $4,615 .