menu
bartleby
search
close search
Hit Return to see all results

Given the following information for O'Hara Marine Co., calculate the depreciation expense: sales = $91,000; costs = $45,300; addition to retained earnings = $14,300; dividends paid = $3,520; interest expense = $3,850; tax rate = 23 percent

Question

Given the following information for O'Hara Marine Co., calculate the depreciation expense: sales = $91,000; costs = $45,300; addition to retained earnings = $14,300; dividends paid = $3,520; interest expense = $3,850; tax rate = 23 percent

check_circleAnswer
Step 1

Calculation of depreciation expenses:

Depreciation expenses is $18,707.14.

Excel spread sheet:

...
A
B
1 Calculation of depreciation Amounts (S)
Net income:
3 Additional retained earnings
4 Add: Dividend paid
5 Net income
6 EBT
7 Tax rate
8 EBIT
9 Interest expenses
10 Add: EBT
11 ЕBIT
$14,300
$3,520
$17,820
$23,142.86
$5,322.86
S3,850.00
$23,142.86
$26,992.86
12 Depreciation:
13 Sales
14 Less: Cost
$91,000
$45,300
S26,992.86
ЕBIT
15
16 Depreciation
$18,707.14
N
help_outline

Image Transcriptionclose

A B 1 Calculation of depreciation Amounts (S) Net income: 3 Additional retained earnings 4 Add: Dividend paid 5 Net income 6 EBT 7 Tax rate 8 EBIT 9 Interest expenses 10 Add: EBT 11 ЕBIT $14,300 $3,520 $17,820 $23,142.86 $5,322.86 S3,850.00 $23,142.86 $26,992.86 12 Depreciation: 13 Sales 14 Less: Cost $91,000 $45,300 S26,992.86 ЕBIT 15 16 Depreciation $18,707.14 N

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Finance

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold, administrative and se...

A: Calculate the net income as follows:

question_answer

Q: 1. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $3...

A: 1)Calculate the present and future value of an investment: Excel workings:

question_answer

Q: A company currently pays a dividend of $2 per share, D0 = $2. It is estimated that the company’s div...

A: Price of a stock today = PV of all the future dividendsCost of equity = Risk free rate + Beta x Mark...

question_answer

Q: The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and th...

A: Calculate the cash flow to creditors as follows:

question_answer

Q: If the annual geometric mean for the equity risk premium is 8.4 percent, what percentage of the equi...

A: Calculation of Percentage of Equity Risk Premium:

question_answer

Q: The prices of a certain security follow a geometric Brownian motion with parameters mu=.12 and sigma...

A: Let's pull together all the variables of Black Scholes Model:S = Current stock price = 40K = Strike ...

question_answer

Q: Why should a real estate listing contract be in writing and what are the essential elements of a lis...

A: Real estate contracts refer to legal aggreement between different parties. It is enforceable by law ...

question_answer

Q: Assume that, as a part of its economic development program, your governmental agency has committed t...

A: Such a problem is better solved in an excel. Hence, I have solved it in excel and provided a snapsho...

question_answer

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for t...

A: Computation of the future value at the end of 10th year:Note: FVAF denotes the Future value annuity ...

Sorry about that. What wasn’t helpful?