To determine the Depreciation and Amortization for 2023, we need to consider the operating profit calculated earlier, as well as the total expenses involved in arriving at the operating profit. Here’s a step-by-step approach:
Given Information:
- Sales: $2,531,700.00
- COGS: $986,163.00 (already calculated)
- Selling & Administrative Expenses: $704,250.00
- Operating Profit Margin: 12.00%
- Calculated Operating Profit: $303,804.00 (already calculated)
Step 1: Calculate Total Expenses
We know the Operating Profit can be calculated using the formula:
\[
\text{Operating Profit} = \text{Gross Profit} - \text{Total Expenses}
\]
However, since Gross Profit is not directly provided here, we can rearrange to use the following formulas:
\[
\text{Gross Profit} = \text{Sales} - \text{COGS}
\]
Then we can find Total Expenses using:
\[
\text{Total Expenses} = \text{Selling & Administrative} + \text{Depreciation & Amortization}
\]
Step 2: Calculate Gross Profit
From our previous calculations:
\[
\text{Gross Profit} = \text{Sales} - \text{COGS}
\]
\[
\text{Gross Profit} = 2,531,700.00 - 986,163.00 = 1,545,537.00
\]
Step 3: Calculate Total Expenses
Now we will rearrange the formula for Operating Profit:
\[
\text{Operating Profit} = \text{Gross Profit} - \text{Total Expenses}
\]
\[
\text{Total Expenses} = \text{Gross Profit} - \text{Operating Profit}
\]
Substituting our values:
\[
\text{Total Expenses} = 1,545,537.00 - 303,804.00 = 1,241,733.00
\]
Step 4: Calculate Depreciation and Amortization
From our calculation, we know:
\[
\text{Total Expenses} = \text{Selling & Administrative} + \text{Depreciation & Amortization}
\]
Substituting known values:
\[
1,241,733.00 = 704,250.00 + \text{Depreciation & Amortization}
\]
Rearranging the equation gives us:
\[
\text{Depreciation & Amortization} = 1,241,733.00 - 704,250.00
\]
\[
\text{Depreciation & Amortization} = 537,483.00
\]
Conclusion
The Depreciation and Amortization for 2023 is $537,483.00.
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