1. Which of the following is true? A. Total liabilities is made up of current liabilities...
1. Which of the following is true?
A. Total liabilities is made up of current liabilities and long term debt.
B. EBT is EBIT minus depreciation and amortization.
C. Interest expense is paid to common shareholders.
D. Total assets is made up of current assets, preferred stock, and gross fixed assets.
2. Assume EBIT is 6, Net Income is 3, the flat tax rate is 40% and the company has no preferred stock. What is Earnings Before Taxes?
______________________
3. Assume EBIT is 4, Net Income is 2, the flat tax rate is 20% and the company has no preferred stock. What is the interest expense?
A. 1.50
B. 2.00
C. 3.25
D. 2.50
4. Assume Total Assets are 10 and New Fixed Assets are 7. What are the Current Assets?
A. 17.00
B. 1.43
C. 3.00
D. 0.70
Thank you in advance !!
Homework Answers
1.
A. Total liabilities is made up of current liabilities and long term debt
2.
Net income equals earnings after tax, if it is 3 and tax rate is 40%, then earnings before tax is
=Earnings after tax / (1-tax rate)
=3 / 0.6
=5
3.
If net income is 2 ,and tax rate is 20%, earnings before tax is:
=2/0.8
=2.5
If EBIT is 4 and EBT is 2.5, interest component is:
=EBIT - EBT
=4 - 2.5
=1.5
4.
Total assets = Fixed assets + Current assets
10 = 7 + current assets
Current assets = 3
Add Answer to:
1. Which of the following is true?
A. Total liabilities is made up of current liabilities...
Dropdown answers: 1. Current assets: 489, 359, 261, 326 2. Total assets: 662, 463, 597, 825...
Dropdown answers:
1. Current assets: 489, 359, 261, 326
2. Total assets: 662, 463, 597, 825
3. Subordinate debenture: 89, 116, 107, 44
4. $2.8 preferred stock c claims: 31, 26, 44, 62
5. Total claims: 597, 463, 835, 661
6. Interest expense: 12, 9, 4, 11
7. EBT: 44, 41, 49, 42
8. Taxes (50%): 24, 21, 20,22
9. Net income:24, 21, 20,22
10. Dividends on 2.8 preferred: 32, 37, 75, 3
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Zomby Co.’s revenues for the current year is $30,000. Its net fixed assets are $10,000, short-term liabilities are $3,000, long-term liabilities are $12,000 and shareholders’ equity is $7,000. Depreciation expense of the company is 25% of its net fixed assets and its interest expense is 10% of its long-term debt. If costs of goods sold is $22,500, general and administrative expenses are $6,000 and tax rate is 40%, calculate the following: a. Current Assets b. EBIT c. Net Income d....
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Solve for the missing numbers. Total Liabilities And Equity
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Calculate the Dupont equation for both years shown, 2012
and 2013.
Prepare a source and use statement for
this company. What was the total use of funds?
a- 480
b- 450
c- 510
d- 470
e- None of the above
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Dropdown answers:
1. Current assets: 489, 359, 261, 326
2. Total assets: 662, 463, 597, 825
3. Subordinate debenture: 89, 116, 107, 44
4. $2.8 preferred stock c claims: 31, 26, 44, 62
5. Total claims: 597, 463, 835, 661
6. Interest expense: 12, 9, 4, 11
7. EBT: 44, 41, 49, 42
8. Taxes (50%): 24, 21, 20,22
9. Net income:24, 21, 20,22
10. Dividends on 2.8 preferred: 32, 37, 75, 3
11. Income available to common stockholders: -17,...
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Prepare a source and use statement for
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d- 470
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