Use the information below provided by Angel Baby Angel Company: Sales     8,250,000.00 Operating costs     4,725,000.00 Operating income     3,525,000.00 Interest expense     1,750,000.00 Earnings before taxes     1,775,000.00 Taxes (40%)        621,250.00 Net income     1,153,750.00             WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places) Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
icon
Related questions
Question

10. 

Use the information below provided by Angel Baby Angel Company:

Sales

    8,250,000.00

Operating costs

    4,725,000.00

Operating income

    3,525,000.00

Interest expense

    1,750,000.00

Earnings before taxes

    1,775,000.00

Taxes (40%)

       621,250.00

Net income

    1,153,750.00

           

WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)

Refer to Angel Baby Angel Company, what is its TIE ratio? Use 4 decimal places in your final answer.

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Foreign Exchange Transactions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning