Resoneffect Inc. has a degree of pretax cash flow operating leverage equal to 1.12. If the firm's EBITDA was $2,000 last year while its depreciation and amortization expense was $150 in the same year, then what was the firm's degree of accounting operating leverage?

Resoneffect Inc. has a degree of pretax cash flow operating leverage equal to 1.12. If the firm's EBITDA was $2,000 last year while its depreciation and amortization expense was $150 in the same year, then what was the firm's degree of accounting operating leverage?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

See similar textbooks

Related questions

Q: Don't use ai given answer accounting questions

A: a. Proceeds of the Note (Interest Rate of 8%) To calculate the proceeds of the note, we first need…

Q: Overhead rate per direct labor cost?

A: Explanation of Manufacturing Overhead: Manufacturing overhead represents all manufacturing costs…

Q: 5 POINTS

A: To calculate the present value of the lease, use the formula:Present Value (PV) = Annual Payment ×…

Q: Please give me answer general accounting question

A: Step 1: a) Proceeds of the note Assuming it carries an interest rate of 8% Assuming the note carries…

Q: Financial Accounting Question need help

A: Step 1: Define Net Realizable Value (NRV)Net realizable value (NRV) is the amount of accounts…

Q: General Accounting

A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the owners' residual…

Q: I want to correct answer general accounting question

A: To calculate the variable cost per unit and total fixed cost using the high-low method, follow these…

Q: Subject: Financial Accounting-The Banner Income Fund's average daily total assets were $100 million…

A: To calculate the turnover, use the formula: Turnover = Sales ÷ Average Total Assets Given:Sales =…

Q: What is the cost of goods manufactured for the year ended DECEMBER 31, 2004 ?

A: To calculate the Cost of Goods Manufactured (COGM) for the year ended December 31, 2004, use the…

Q: A company produces a single product.

A: The question pertains to the inventory costing method called variable costing. Variable costing,…

Q: At the beginning of the year, Lexington Corporation had total assets of $920,000 and total…

A: Explanation of Total Assets: Total assets represent everything a company owns that has value and can…

Q: What is city honda's total asset turnover

A: Concept of Total Assets:Total assets represent the total value of everything a company owns,…

Q: Hello tutor please provide this question solution general accounting

A: Step 1: Definition of Debt to Assets RatioThe debt-to-assets ratio measures the proportion of a…

Q: What is its degree of opereting leverage? General accounting

A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Q: Provide answer this general accounting question

A: Step 1: Define Reclassification AdjustmentA reclassification adjustment is an accounting procedure…

Q: The amount of cost of goods sold for the period?

A: Explanation of Beginning Inventory:Beginning inventory refers to the value of goods available for…

Q: General Accounting Question solve this problem

A: Step 1: Define Straight-Line DepreciationStraight-line depreciation is a method of allocating the…

Q: Haven Corporation prepared the following purchases budget.

A: For the October purchase of 60,000:25% is paid in the month of purchases, October.55% is paid in the…

Q: The times interest earned ratio??

A: To calculate the times interest earned ratio, we use the following formula: Times Interest Earned…

Q: How many units were sold

A: Concept of Total Sales:Total sales represent the total revenue generated by a company from selling…

Q: ???????

A: We have given: Average total assets = $60,000Average common stockholders' equity = $25,000Net sales…

Q: None

A: To calculate the debt-equity ratio, we can use the DuPont identity for Return on Equity (ROE):…

Q: Brookfield s net income for September is?

A: Explanation of Revenue: Revenue represents the total amount of money a business earns from its…

Q: ??!!

A: Explanation of Equivalent Units of Production:Equivalent units of production refer to the number of…

Q: The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing…

A: To calculate the total direct labor variance, we need to break it into two components: the direct…

Q: General Accounting Question

A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Q: Need correct answer

A: Resource consumption sequencing plays a crucial role in how costs are accumulated, as it helps…

Q: Financial Accounting

A: To determine the deficit as a percentage of GDP, subtract the government's revenue from its…

Q: None

A: The correct criterion is:Primary economic environment The concept of functional currency arises from…

Q: 5 PTS

A: **(a) All data holds equal importance**- **Why this is incorrect**: - Data collection involves…

Q: What is the direct labor rate variance of these general accounting question?

A: Step 1: Define Direct Labor Rate VarianceDirect labor rate variance measures the difference between…

Q: Provide correct answer general accounting

A: Step 1: Definition of Budgeted Production CostsBudgeted production costs refer to the total planned…

Q: The Tin company uses the straight-line method to depreciate its equipment. On May 1, 2018, the…

A: Step 1: Analysis of information givenPurchase price of equipment = $200,000Useful life = 10…

Q: What is stellar enterprises current income tax expense or benefit on these financial accounting…

A: Step 1: Define Current Income Tax ExpenseCurrent Income Tax Expense It refers to the amount of…

Q: Quick accounting question

A: Step 1: Define Net Operating Income:The net operating income is the gross profit in excess of the…

Q: Correct answer

A: Explanation of Variable Product Cost per Unit:The variable product cost per unit refers to the total…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Total Asset Turnover and Return on Equity (ROE)Total Asset Turnover: This…

Q: Please provide solution this financial accounting question

A: Step 1: Define Cash ReceiptsCash receipts refer to the total cash inflows during a specific period,…

Q: I am waiting for answer

A: Explanation of Accounts Receivable: Accounts receivable represents money owed to a company by…

Q: I want answer

A: Step 1: Analysis of information givenTotal assets = $6,750,000Common equity = $2,500,000Since there…

Q: What is the stocks current price?

A: The price of a stock can be calculated using the formula: Price = P/E ratio × Earnings per share…

Q: Financial information is from Shovels Construction Company

A: Explanation of Current Assets:Current assets are short-term assets that a company expects to convert…

Q: Solve this Question

A: Explanation of Cost of Goods Manufactured (COGM):The cost of goods manufactured (COGM) refers to the…

Q: Calculate the average operating assets?

A: Explanation of Net Operating Income: Net operating income (NOI) represents a company's earnings from…

Q: Greenfield Corp., which owes Oakwood Inc. $750,000 in notes payable with accrued interest of…

A: Step 1:Calculate the carrying amount as follows:Carrying amount = Original cost - Accumulated…

Q: During 2015, the assets of Inspiring Sky increased by $45,000, and the liabilities increased by…

A: Explanation of Assets: Assets represent everything a business owns that has value, such as cash,…

Q: Ans

A: Detailed explanation: Measurement attribute selection directly impacts reporting quality since…

Q: ?? Financial accounting question

A: Step 1: Define Process of Capital BudgetingThe evaluation of cash inflows and outflows at all times…

Q: Compute production cost per unit under variable costing?

A: Explanation of Direct Labor: Direct labor represents wages paid to workers directly involved in…

Q: Compute the product cost per unit using absorption costing?

A: Absorption costing is a costing method where all manufacturing costs are included in the cost of a…

Question

100%

Please given answer general accounting

Resoneffect Inc. has a degree of pretax cash flow
operating leverage equal to 1.12. If the firm's
EBITDA was $2,000 last year while its depreciation
and amortization expense was $150 in the same
year, then what was the firm's degree of accounting
operating leverage?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

General accounting
Marvellous Company has a degree of cash flow operating leverage equal to 1.25. If the company's EBITDA was $1,000 last year while its depreciation and amortisation expense was $50 in the same year, then what was the company's degree of accounting operating leverage? 1.26 1.30 1.32 1.35
What is it's cash coverage ratio of this financial accounting question?
The Net Income of a company is $137. Capital expenditures for the year was $98, depreciation was $13, and non - cash working capital increased by $90. If the company has a stable capital structure and its debt to capital ratio (i.e., D/(D + E)) is expected to remain fixed at 64%, what is the free cash flow to the equity holders (FCFE)?
Which of the following is true of a leverage ratio? It is a measure of the extent to which a company uses debt compared to equity. O It is a measure of whether the company will have sufficient cash to pay its bills over the following year. O It is a comparison of the company's net income to its stockholder's equity. O It is a measure of the company's ability to be profitable over the coming year. O It is a measure of the rate at which the company "turns over" its inventory.
What is the firm's ROA?
Need help
It is known that a firm’s Net Operating Profit After Tax (NOPAT) is $58,000 and its Economic Value Added (EVA) is $18,000. What is the firm’s Weighted Average Cost of Capital (WACC) if its debt is $150,000 and equity is $250,000?
What is the firm's assets turnover?
Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding depreciation) = $5 million;depreciation = $1.4 million; other operating expenses = $2 million;interest expense = $1 million. If the tax rate is 25%, what is NOPAT,the net operating profit after taxes? ($1.2 million)
Kelso's has a return on equity of 15.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit margin? {Hint: capital intensity ratio is related to total asset turnover.} 13.65% 9.72% 7.45% 11.40% 12.15%
A firm had a debt ratio of 0.85. The pretax cost of debt is 8% and the reqiured return on asset is 15.5%. What is the cost of equity if we factorin the firms tax rate of 24%? A) 19.53 B) 18.92 C) 21.57 D) 20.35 E) 20.96