A Company recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation.  It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%.  How much was the firm's Operating Income (earnings before interest and taxes - EBIT)?

Q: Ignacio, Inc., had after-tax operating income last year of $1,196,500. Three sources of financing…

A: Given, Net operating profit = $1,196,500 Mortgage bonds rate = 4% or 0.04 Unsecured bonds rate = 6%…

Q: The Malia  Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total…

A: Given:Sales=$65 million in year 2019Assets = $42 millionOperating profit margin = 12%Liabilities =…

Q: The Sunflower Corporation reported the following information from their financial statements:…

A: Dollar amount of taxes the firm had to pay to the taxation office is the amount that is applicable…

Q: LSP. Co, recently reported $200,000 of sales during the year 2016. The company had $20,000 of…

A: We need to find net income in this question. Net income is what available for distribution to…

Q: Crystal Oil has $9 million in accounts payable, $1.8 million in salaries and taxes payable, and…

A: Payables deferral period of a company, is nothing but the average time period taken to pay the…

Q: 5. LSP. Co recently reported $11,750 of sales, $5,500 of operating costs other than depreciation,…

A: Free Cash Flow- Free cash flow (FCF) is a measure of how much money a company makes after paying for…

Q: Patterson Brothers recently reported a EBITDA of $7.5 million and net income of $2.625 million. It…

A: Depreciation is the decrease in the value of the fixed assets over the specific period of time due…

Q: Last year, Jackson Tires reported net sales of $40,000,000 and total operating costs (including…

A: Net sales = $40,000,000 Total operating costs = $26,000,000 Net profit before tax = Net sales-Total…

Q: Last year Tiemann Technologies reported $10,300 of sales, $6,450 of operating costs other than…

A: GIVEN, sales 10300 operating cost 6450 depreciation 1400 BOND 4800 INT RATE 6%…

Q: . What was the depreciation expense?

A: Information Provided: Annual Revenue = $37,800 COGS = $23,200 Administrative expenses = $6300…

Q: Suppose Ningbo Steel has sales revenue of $11,000 sales revenue, cost of goods sold off $5000,…

A: Given information : sales revenue = $11,000 cost of goods sold = $5000 operating expenses = $1000…

Q: AT&T recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than…

A: Given data; sales= $ 8250 operating cost = $ 5750 depreciation = $ 1100 value of bond = $3200…

Q: e Allen corporation had sales of $63 million, total assets of $44 million, and total liabilities of…

A: Operating return on assets = Operating profit / sales * 100

Q: Papa Roach Exterminators, Inc., has sales of $659,000, costs of $275,000, depreciation expense of…

A: In this question we require to calculate the addition to retained earnings for Papa Roach…

Q: Last year​ Sanderson, Inc. had sales of $3.1 million. The​ firm's cost of goods sold came to $2.1…

A: Taxable Income: When calculating the amount of taxes owing by a person or a business, taxable income…

Q: 1. Fattal Inc. recently reported $120,000 of sales, $75,500 of operating costs other than…

A: The statement of profit or loss of a company shows all the income earned and expenses incurred by a…

Q: At the end of last year, Ralph Inc. reported the following income statement (in millions of…

A: Formulas:

Q: he Alabaster Corp. reported Net sales of 6.7 million,operating costs of 4.3 million, and…

A: Net income is the excess of revenue over all the operating and other expenses of the company…

Q: Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,818,300.…

A: Given, Sales = $16,818,300 Depreciation and amortization = $830,300 Interest expense = $872,000…

Q: In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and…

A: Times Interest Earned = Earnings Before Interest and Tax/ Interest Expense

Q: ACE, Inc. incurred depreciation expenses of $21,900 last year. The sales were $811,400 and the…

A: Given Information: Depreciation expense = $21,900 Sales = $811,400 Retained earnings = $14,680…

Q: At the end of last year, River Side Company achieved $9 million in revenues (EBITDA). Depreciation…

A: Net income:  It is often defined as the total earnings earned by a business during an accounting…

Q: Compute the rate of ROA for 2008 and disaggregate ROA into profit margin for ROA and asset turnover…

A: Calculate profit margin: Profit margin = Income + Interest expense ( 1- Tax) + Minority interest /…

Q: In 2016, the Allen Corporation had sales of $69 million, total assets of $48 million, and total…

A: S&H Construction Company Tax 0.35 Sales $14,500,000 Interest Expenses $306,000…

Q: Show your answer using the income statement structure.

A: The income statement is a comprehensive statement showing the revenues earned and the…

Q: Crystal Oil has $9 million in accounts payable, $1.8 in saleries and taxes payable, and $10.4 in…

A: Payables deferral period is a measure of delay between when a firm receives a bill and pays towards…

Q: For 2018, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including…

A: Sales= $11,500 Operating Costs= $5,000 Invested Capital= $20,500 WACC= 8% Tax rate= 40% EVA=?

Q: Alpha Resources has sales revenue of $800,000, operating costs of $400,000, and depreciation expense…

A: Sales = $800,000 Operating cost = $400,000 Depreciation = $20,000 Bonds = $300,000 Interest rate =…

Q: Last year, LTD limited. reported $11,250 of sales, $4,500 of operating costs other than…

A: Here, Last Year data: Sales are $11,250 Operating Cost is $4500 Depreciation is $1250 Coupon rate of…

Q: In the past year, TVG had revenues of $3.10 million, cost of goods sold of $2.60 million, and…

A: Annual interest expense = Amount of debt outstanding x rate of interest x period = $1,100,000 x 9% =…

Q: ance its operations, has no current liabilities, and recognizes depreciation periodically.…

A: An income statement is a financial statement that reveals how lucrative a company was during a…

Q: Green Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than…

A: As per the Guidelines, only first question should be answered. Since you have asked multiple…

Q: The Alabaster Corp. reported Net sales of 6.7 million,operating costs of 4.3 million, and…

A: Particulars Amount ($) Net Sales 6,700,000 Less: Operating costs (4,300,000) Less:…

Q: 1. Gert. Co recently reported $10,750 of sales, $5,500 of operating costs other than depreciation,…

A: Based on the the given data we will calculate the cash flow,

Q: A company paid $11,310 in interest and $16,500 in dividends last year. The times interest earned…

A: Data Given:: Interest Expenses= $11,310 Times Interest earned ratio= 2.9 Depreciation expense=…

Q: Minas Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than…

A: Net Income is the reported earnings or revenues that are reported in the books of accounts of a…

Q: Nataro, Incorporated, has sales of $676,000, costs of $338,000, depreciation expense of $82,000,…

A: Here, To Find: Net Income =?

Q: Meric Mining Inc. recently reported $14,700 of sales, $7,600 of operating costs other than…

A: Net income can be calculated by deductions of cost from revenues.

Q: sidewinder, Inc., has sales of $678,000, costs of $339,000, depreciation expense of $84,000,…

A: Retained earnings refer to the part of the distributable profit that should not be distributed to…

Q: 16, the Allen corporation had sales of $63 million, total assets of $44 million, and total…

A: Operating return on assets = Operating profit / sales * 100 Return on equity = Net profit / Equity *…

Q: Marine Outlets, Inc. had $ 14 million in sales last year, COGS of $ 8 million, depreciation expense…

A: In the given question we need to compute the Firm's Net income from the information given.

Q: Last year, Roswin Robotics have $5,000,000.00 in operating income (EBIT). Its depreciation expense…

A: Net Operating Working Capital = Operating Current Assets - Operating Current Liabilities Net Working…

Q: Easy Launch Box recently reported $15,500 of sales, $8,250 of operating costs other than…

A: In this question, we have been asked to find the operating income for which we have been given…

Q: A firm’s annual revenues are $850,000. Its expenses for the year are $615,000, and it claims…

A: Tax:- It is the amount which one pays to the government of the country as per prescribed rates or…

Q: Cox Corporation recently reported an EBITDA of $58 million and $10 million of net income. The…

A: EBITDA - Depreciation and amortization = Earnings before Interest and Tax (EBIT)

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.