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: Pluto Minerals recently reported $15,800 of sales, $10,600 of operating costs other than…

A: EBIT (Earnings Before Interest and Taxes) is a financial metric that represents a company's…

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: A firm has the following accounts.: Sales = $10,346,000; Cost of goods sold = $6,005,000; Addition…

A: We know that,Sales - Cost of Goods Sold - Interest Expense - Depreciation = Profit before…

Q: < (Corporate income tax) Last year Sanderson, Inc. had sales of $3.2 million. The firm's cost of…

A: I have provided the answer above for you. See the answer I provided above to understand the given…

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: Emery Mining Inc. recently reported $125,000 of sales, $75,500 of operating costs other than…

A: given, sales =$125,000 operating cost = $75,500 depreciation = $10,200 bond = $16500 interest rate =…

Q: 2. Alarm. Co recently reported $15.000 of sales, $5.500 of operating costs other than depreciation,…

A: Net Income Net income refers to the earnings of the business after deducting all the losses and…

Q: Last year, Crystal Rock Holdings reported $510,000 of sales, $262,500 of operating costs other than…

A: The times-interest-earned ratio is a financial ratio that represents the ability of a company to…

Q: A company has interest expenses totaling = $722 MM, for which they pay 7%/annum to their lender.…

A: Corporate financing involves the methods and sources a company uses to fund its operations and…

Q: A company recently reported $2100 of sales, $1, 100 of operating costs other than depreciation, and…

A: 1. **Sales Revenue**: $21002. **Operating Costs (Excluding Depreciation)**: $11003.…

Q: Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other th…

A: Operating income is the income from the core business activities after doing payments for all…

Q: . What was the depreciation expense?

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

Q: ABC recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500…

A: Free cash flows-Free cash flow is cash flow generated by a company after accounting for cash…

Q: The Pearson corporation reported an EBITDA of $7.5 million, net income of $1.8 million, $2 million…

A: Computation:

Q: The Dana Flatt Corporation had sales of $2 million this past year. Its COGS was $1.2 million and its…

A: The term taxable income refers to any gross income earned that is used to calculate the amount of…

Q: Kobe capital Corp recently reported $19500 off sales $7650 of operating cost other than depreciation…

A: The Earnings Before Taxes (EBT) refers to the financial measure which states the earnings of the…

Q: A firm’s income statement included the following data. The firm’s average tax rate was 20%. Cost of…

A: Solution-  The income statement include all activity that affact the business over a period of time.…

Q: Kobe Capital Corp. recently reported $19,500 of sales, $7,950 of operating costs other than…

A: The Earnings Before Taxes (EBT) refers to the financial measure which states the earnings of the…

Q: company recently reported $550,000 of sales, $352,000 of operating costs other than depreciation,…

A: EBIT The profitability of a business can be determined with the help of EBIT. EBIT means the…

Q: Infrared Vision Inc. recently reported $15,500 of sales, $13,700 of operating costs other than…

A: Lets understand the basics.Net income after taxes gets calculated to know net amount remains after…

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: Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000;…

A: Income before tax means net income of the business after considering all operating and non operating…

Q: Nataro, Incorporated, has sales of $710,000, costs of $347,000, depreciation expense of $92,000,…

A: Sales = s = $710,000Cost = c = $347,000Depreciation = d = $92,000Interest Expenses = i = $57,000

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

A: Sales = s = $15,500Operating Cost other than Depreciation = oc = $8500Depreciation = d = $1700Value…

Q: HHH Inc. reported $11,750 of sales and $7,025 of operating costs (including depreciation). The…

A: EVA means economic value added by business over the period. This is calculated by deducting weighted…

Q: Rao Construction recently reported $23.50 million of sales, $12.60 million of operating costs other…

A: Profit means excess of total revenue from total cost. Profit is computed at different levels for…

Q: Shrives Publishing recently reported $11,500 of sales, $5,500 of operating costs other than…

A: Sales = s = $11,500Operating Cost other than depreciation = oc = $5500Depreciation = d = $1250Tax…

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: Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than…

A: Sales                                                           =  9250 Operating cost other than…

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: Little Books, Inc. recently reported 3.100 million USD of net income. The firm's EBIT was 6.400…

A: Net income = $3.100 million EBIT = $6.40 million Tax rate = 40%

Q: Solve this problem

A: Step 1: Step 2: Step 3: Step 4:

Q: Nataro, Incorporated, has sales of $674,000, costs of $336,000, depreciation expense of $80,000,…

A: Net income is an economic measure that refers to a company's earnings after all expenses, costs and…

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: Enter your answer in whole dollar. Round "ROI" answer to two decimal places. Invested Capital: ?…

A: Particulars Amount Net income          4,30,00,000 Add : Tax @ 40%   2,86,66,666.67…

Q: Henry Company had sales revenue of USD1,200,000, gross profit of USD749,000, operating expenses of…

A: Income tax expense refers to the expense amount which company records in the accounting period for…

Q: (Calculating corporate income tax) G. R. Edwin Inc. had sales of $6 million during the past year.…

A: TaxationRules by which an authority (usually a government) imposes a financial obligation on…

Q: (Corporate income tax) G. REdwin Inc. had sales of $6.01 million during the past year. The cost of…

A: Given that : sales : $6.01 million Cost of good sold :$2.7 million Operating expenses : $2.47…

Q: Tommy’s Woodworking had sales of $4 million this past year.  Its COGS was $2.75 million and its…

A:

Q: The Little Books Inc. recently reported $3 million of net income. The company’s EBIT was $6 million…

A: Computation:

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

A: Free cash flow (FCF) is the cash flow that a company generates from its operations after accounting…

Q: Shrives Publishing recently reported $11,500 of sales, $5,500 of operating costs other than…

A: The objective of the question is to calculate the free cash flow of Shrives Publishing. Free cash…

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…

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.