Question

Please format answers in an excel worksheet or make it in an excel worksheet format.

22. [EXCEL] Income statement: Sosa Corporation recently reported an EBITDA of $31.3 million and net income of $9.7 million. The company had $6.8 million in interest expense, and it's average corporate tax rate was 35 percent. What was its depreciation and amortization expense?

23. [EXCEL] Income statement: Fraser Corporation has announced that its net income for the year ended June 30, 2017, was $1,353,412. The company had EBITDA of $4,967,855 and its depreciation and amortization expense was equal to $1,112,685. The company's average tax rate is 34 percent. What was its interest expense?

24. [EXCEL] Income Statement: For its most recent fiscal year, Carmichael Hobby Shop recorded EBITDA of $512,725.20, EBIT of $362,450.20, zero interest expense, and cash flow to investors from operating activity of $348,461.25. Assuming there are no non-cash revenues recorded on the income statement, what is the firm's net income after taxes?

Answer 1

Alignment Number Clipboard B50 Font =B4-B6 F 1 =B4-B6 =B7+B8 2 Answer to Question No. 22 3 Income Statement 4 EBITDA 5 Depreciation and Amortization 6 EBIT 7 Interest Expense 8 Earnings before Taxes 9 Income Tax 10 Net Income 11 31,300,000 9,576,923 21,723,077 6,800,000 14,923,077 5,223,077 9,700,000 =B10/(1-0.35) 12 13 Calculation: 14 Net Income = $9,700,000 15 Earnings before Taxes = Net Income / (1 - Tax Rate) 16 Earnings before Taxes = $9,700,000 / (1 -0.35) = $14,923,077 17 18 EBIT = Earnings before Taxes + Interest Expense 19 EBIT = $14,923,077 + $6,800,000 = $21,723,077 20 21 Depreciation and Amortization Expense = EBITDA - EBIT 22 Depreciation and Amortization Expense = $31,300,000 - $21,723,077 = $9,576,923 23