Question

Jake Entertainment Corporation has three segments with revenue, operating income, and depreciation and amortization information (in...

Jake Entertainment Corporation has three segments with revenue, operating income, and depreciation and amortization information (in millions) as follows:

Segment Revenue Operating
Income
Depreciation
and Amortization
Film $5,000 $1,500    $525          
Theme Park 1,000 320    112          
Video Game 500 175    53          
Totals $6,500 $1,995    $690          

The EBITDA for the Film segment is

a.$4,475 million

b.$2,975 million

c.$975 million

d.$2,025 million

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Answer #1

Non cash expenses are depreciation and amortisation

EBITDA of Film segment = Operating income + non cash expense

= $1,500 + $525

= $2,025

Option d.

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