Your first comment is correct, I don’t know if Bone also stated any information relevant to completing the problem that you are missing. But I would remember your two formulas over the one he tried to put all together.
As for inventory: BGN Inventory + Purchases = COGS +End Inventory
memorize that forumula, it’s easier to complete the question if you know this formula. Unless you are doing a cash flow statement, where it is better to know the change inventory from one period to the next.
yeah i mean this is getting a little ridiculous. its in FRA and he was discussing return on total capital = EBIT/average total capital…his quote:
“Now EBIT is good because it’s a pre-levered measure of return, so before any distributions to both equity and debtholders. One down side of using EBIT is that it’s also before tax, and of course, the return to both debt and equity holders are after tax payments.”
then he moves on to ROE.
I guess the good news is that I’m catching these mistakes.