General Accounting Question solution with correct option A company has an EBIT of $2,400,000 and aninterest expense of $300,000. What is its DFL?a. 8.0b. 0.125C. 1.1429d. Not enough information to determine theanswer.

Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Answered: A company has an EBIT of $2,400,000 and…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales $ 663,800 Costs 425,700 Depreciation 101,300 ЕBIT Тахes (21%) Net income b. Calculate the OCF. (Do not round intermediate calculations.) c. What is the depreciation tax shield? (Do not round intermediate calculations.) b. OCF с. Depreciation tax shield
Please answer very fast then i ll upvote Calculate EBIT. Revenue 1,061,751.0 Cost of sales 690,135.0 Selling, general and administration 53,087.0 Other income 11,796.0 Operating income 330,325.0 Interest expense 19,874.0 Profit before tax 310,451.0 Tax expense 46,500.0 Net income 263,951.0 The footnotes mention the following: Cost of sales includes inventory write off costs 39,677.0 Cost of sales includes distribution costs 120,458.0 SG&A includes corporate restructuring expenses 15,570.0 Responses 385,572.0 275,078.0 330,325.0 506,030.0
a. Fill in the missing numbers in the following income statement: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32. Sales Costs Depreciation EBIT Taxes (25%) Net income $ b. OCF c. Depreciation tax shield 643,700 384,300 136,500 b. What is the OCF? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. c. What is the depreciation tax shield? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.
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A company has an EBIT of $2,400,000 and an interest expense of $300,000. What is its DFL? a. 8.0 b. 0.125 C. 1.1429 d. Not enough information to determine the answer.