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: LSP. Co, recently reported $200,000 of sales during the year 2016. The company had $20,000 of…

A: We need to find net income in this question. Net income is what available for distribution to…

Q: Red Snail Satellite Company has a total asset turnover ratio of 3.50x, net annual sales of $25…

A: The objective of the question is to calculate the debt ratio and times-interest-earned ratio for Red…

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: Lauryn’s Doll Co. had EBIT last year of $47 million, which is net of a depreciation expense of $4.7…

A: Given, EBIT $47 million Depreciation $4.7 million capital expenditures $7.25 million Net working…

Q: In the past year, TVG had revenues of $3.03 million, cost of goods sold of $2.53 million, and…

A: TIME INTEREST EARNED RATIO Times Interest Earned Ratio is the Ratio Between Earning 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: Lifeline, Inc., has sales of $830,362, costs of $376,820, depreciation expense of $39,240, interest…

A: Income statement :— It is one of the financial statement that shows profitability, total revenue 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: Bryon Inc recently reported $6million of net income. Its EBIT was $13.2 million, and its tax rate…

A: The mathematical equation of the concept used is:

Q: During the year, Belyk Paving Company had sales of $2,425,000. Cost of goods sold, administrative…

A: Long-term debt is debt that is due in more than one year or more than 12 months. This is a liability…

Q: . What was the depreciation expense?

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

Q: A firm has the following accounts; sales = $1,190,000, cost of goods sold = $876,000, depreciation…

A: Sales = s = $1,190,000Cost of Goods Sold = cogs = $876,000Depreciation = d = $130,000Addition to…

Q: Lauryn’s Doll Co. had EBIT last year of $52 million, which is net of a depreciation expense of $5.2…

A: Given, EBIT is $52 million Depreciation expense $5.2 million Capital expenditures is $5.75 million

Q: Lawn Care, Inc., has sales of $367,400, costs of $183,600, depreciation of $48,600, interest of…

A: Return on equity measures the return generated by common or equity shareholders from their…

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: the Allen Corporation had sales of $ 69 million, total assets of $ 48 million, and total liabilities…

A: The capacity of a business to make operational profit from its assets is gauged by the operational…

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: Houston pumps recently reported net income of $600000 and an interest expense of $238000. The…

A: Economic Value Added (EVA):It represents the true economic profit of a firm. Thus, it is a measure…

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: Help me

A: Approach to solving the question: Below I have provided step by step calculations required for…

Q: Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating…

A: calculation of cost of goods sold = 62% of 14800000 = $ 9176000 calculation of sales and operating…

Q: (Using common-size financial statements) The S&H Construction Company expects to have total sales…

A: Step 1: Preparation of the pro forma income statement.Pro forma Income StatementSales…

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: 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: A firm pays a 6.30% annual interest rate on its bonds with par value $1,000,000. The firm's tax rate…

A: Sales$7,325,000Cost of goods sold$6,664,000Depreication$543,000Tax rate21%Bond's par…

Q: Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP)…

A: A ratio that provides information about the company regarding the capability of payoff its debt…

Q: A company recently reported $9.7 million of net income. Its EBIT was $15.5 million, and its federal…

A: Income statement refers to the statement showing the details of the income and expenses to be…

Q: (Using common-size financial statements) The S&H Construction Company expects to have total sales…

A: Step 1: Given Value for Calculation Next Year Sales = s = $14,600,000Tax Rate = tr = 35%Interest…

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: Caterpillar Corporation paid $23,000 in dividends and $39,700 in interest over the past year. Sales…

A: Cash Flow from Operating Activities (CFOA) is a crucial financial metric that represents the cash…

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: long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a…

A: Net fixed assets:Tangible, long-term assets that a business owns and utilizes to produce goods or…

Q: The firm had sales of $33 million, operating expenses of $14 million, interest of $4 million and…

A: Earnings before interest &amp; taxes(EBIT) is the income generated by an entity before making…

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: 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: Nataro, Incorporated, has sales of $666, 000, costs of $336, 000, depreciation expense of $ 81,000,…

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

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: Give me answer

A: Sales     1,080,000.00 Cost of goods sold      (527,000.00)Gross profit       553,000.00 Selling…

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: hane  Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, general and…

A: Gross margin is the amount of profit achieved by the company after doing payment for the cost of…

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.