The income statement of Orange Company showed the following figures: Revenues 750,000 Cost of Goods Sold -250,000 Gross Margin 500,000 Operating Expense -200,000 Operating Income 300,000 Orange Company owns an equipment with original acquisition cost of 1,000,000 with useful life of 10 years. Operating expenses also include interest expense of 15,000. Prevailing income tax rate is at 25%. How much is the EBITDA of Orange Company? c. 340,000 d. 325,000 a. 415,000 b. 400,000

The income statement of Orange Company showed the following figures: Revenues 750,000 Cost of Goods Sold -250,000 Gross Margin 500,000 Operating Expense -200,000 Operating Income 300,000 Orange Company owns an equipment with original acquisition cost of 1,000,000 with useful life of 10 years. Operating expenses also include interest expense of 15,000. Prevailing income tax rate is at 25%. How much is the EBITDA of Orange Company? c. 340,000 d. 325,000 a. 415,000 b. 400,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.2.1P

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