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Water: Economics

Policy & Guidance: Worksheet H

Interim Economic Guidance for Water Quality Standards

Calculation of Earnings Before Taxes

With and Without Pollution Control Project Costs

A. Earnings Without Pollution Control Project Costs

EBT = R - CGS - CO


Where: EBT = Earnings Before Taxes

R = Revenues

CGS = Cost of Goods Sold (including the cost of materials, direct labor, indirect labor, rent and heat)

CO = Portion of Corporate Overhead Assigned to the Discharger (selling, general, administrative, interest, R&D expenses, and depreciation on common property)


  Three Most Recently Completed Fiscal Years


19___


19 ___


19 ___



R $________
$________
$________
(1)
CGS $________
$________
$________
(2)
CO $________
$________
$________
(3)








EBT [ (1) - (2) -(3) ] $________
$________
$________
(4)

Considerations: Have earnings before taxes changed over the three year period? If so, what would a "typical" year's EBT be? Please explain below.






Worksheet H, Continued

B. Earnings With Pollution Control Project Costs

EWPR = EBT - ACPR


Where: EWPR = Earnings with Pollution Control Project Costs

EBT =

Earnings Before Taxes (4)


ACPR =

Total Annual Costs of Pollution Control Project [Worksheet G, (5) ]




19__ *
EBT (4) $________  (5)
ACPR [Worksheet G, (5)] $________  (6)


EWPR [ (5) - (6) ] $________  (7)

* The most recently completed fiscal year

Considerations: Is the discharger expected to have positive earnings after paying the annual cost of pollution control? __ Yes __ No

Additional Comments:




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