Question

Question 7 2 pts Income statement: Fraser Corporation has announced that its net income for the year ended June 30, 2017, was 1,350,417. The company had EBITDA of 4,953,958, and its depreciation and amortization expense was equal to 1,225,584. The company's average tax rate is 21 percent. What was its interest expense? Round to the nearest whole number. Question 8 2 pts You are given the following information about Clarkesville Plumbing Company. Revenues in 2017 totaled 834,153, depreciation expenses 75,580, costs of goods sold 382,567, and interest expenses 55,926. At the end of the year, current assets were $121 and current liabilities were $107. The company has an average tax rate of 21 percent. Calculate its net income by setting up an income statement. Round to two decimal places.

Answer 1

Net income 1,350,417 1,350,417 1,709,389 Interest Interest (EBITDA - Depreciaton - Interest) x (1 - Tax rate) (4953958-1225584-Interest)*(1-0.21) (4953958-1225584-Interest) *0.79 3728374-Interest 3728374-1709389 2,018,985 !

Less Less Sales Cost of goods sold Gross Margin Depreciation EBIT Interest EBT Tax@21% Net Income $834,153.00 $382,567.00 $451,586.00 $ 75,580.00 $376,006.00 $ 55,926.00 $320,080.00 $ 67,216.80 $ 252,863.20 Less Less