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(EBITDA

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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Griffin and Lasky, Inc. (G&L), supplies industrial automation equipment and machine tools to the automotive industry. G&L recognizes revenue on its long-term contracts over time. Customer orders have long lead times because they involve multiyear capital investment programs. Sometimes orders are canceled. Selected items from the company's financial statements follow. ($ in millions) 20X1 20X2 20X3 Sales $571.5 $619.5 $730.6 Accounts receivable-billed 141.6 94.5 147.9 Accounts receivable-unbilled 104.5 249.4 202.7 Total accounts receivable 246.1 343.9 350.6 57.4 102.3 Inventory Earnings before interest and taxes (EBIT) Depreciation and amortization Plant write-down 74.8 74.8 75.8 38.1 14.8 15.4 19.3 30.3 Required: 1. Compute earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA-after excluding the plant write-down-for each year in the schedule. 2. Are profits at G&L keeping pace with sales? 3. Compute the days receivables outstanding using year-end receivables for each year in the schedule. Assume 365 days as year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA-after excluding t plant write-down-for each year in the schedule. (Enter dollar answers in millions of dollars. Round your answers to 1 deci place.) 20X1 20X2 20X3 Earnings before interest and taxes Depreciation and amortization EBITDA Plant writedown Adjusted EBITDA 2$ 0.0 $ 0.0 $ 0.0 Required 1 Required 2 >
Transcribed Image Text:Griffin and Lasky, Inc. (G&L), supplies industrial automation equipment and machine tools to the automotive industry. G&L recognizes revenue on its long-term contracts over time. Customer orders have long lead times because they involve multiyear capital investment programs. Sometimes orders are canceled. Selected items from the company's financial statements follow. ($ in millions) 20X1 20X2 20X3 Sales $571.5 $619.5 $730.6 Accounts receivable-billed 141.6 94.5 147.9 Accounts receivable-unbilled 104.5 249.4 202.7 Total accounts receivable 246.1 343.9 350.6 57.4 102.3 Inventory Earnings before interest and taxes (EBIT) Depreciation and amortization Plant write-down 74.8 74.8 75.8 38.1 14.8 15.4 19.3 30.3 Required: 1. Compute earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA-after excluding the plant write-down-for each year in the schedule. 2. Are profits at G&L keeping pace with sales? 3. Compute the days receivables outstanding using year-end receivables for each year in the schedule. Assume 365 days as year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA-after excluding t plant write-down-for each year in the schedule. (Enter dollar answers in millions of dollars. Round your answers to 1 deci place.) 20X1 20X2 20X3 Earnings before interest and taxes Depreciation and amortization EBITDA Plant writedown Adjusted EBITDA 2$ 0.0 $ 0.0 $ 0.0 Required 1 Required 2 >
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