Liabilities and assets of a well established company are as follows : Liabilities $ Assets Equity Capital ( $10 per share) 10% Long-term Debt Surplus A/c Current Liabilities 15,00,000 5,00,000 Net Fixed Assets 6,00,000 8,00,000 2,00,000 4,00,000 Current Assets 20,00,000 20,00,000 The company's total assets turnover ratio is 3. Its fixed operating costs are $ 10,00,000 and its variable operating cost ratio is 40%. The income tax rate is 50%. Calculate for the company : (a) EBIT ; (b) EBT ; (c) PAT ; (d) EPS.

Liabilities and assets of a well established company are as follows : Liabilities $ Assets Equity Capital ( $10 per share) 10% Long-term Debt Surplus A/c Current Liabilities 15,00,000 5,00,000 Net Fixed Assets 6,00,000 8,00,000 2,00,000 4,00,000 Current Assets 20,00,000 20,00,000 The company's total assets turnover ratio is 3. Its fixed operating costs are $ 10,00,000 and its variable operating cost ratio is 40%. The income tax rate is 50%. Calculate for the company : (a) EBIT ; (b) EBT ; (c) PAT ; (d) EPS.

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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