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Valuation Methods Prelim Drill 2 Earning Before Interest Tax and Depreciation 1. Kabebe Inc. earned 200,000 net of 400,000 for salaries expense, 100,000 for utilities expense, 20,000 for supplies expenses, 25,000 for depreciation of capital assets. 5,000 for interest payments, and 50.000 for taxes Compute for the EBITDA. 2. Cho-choco Company's applicable tax rate during the year is 20%. The interest paid during the year is 20,000. Compute the EBITDA if the Net Income is 450,000 and Depreciation expense is 40,000 3. If the Earning Before Interest but after Tax is 70,000, interest rate is 20% and tax rate is 30%, how much is EBITDA assuming depreciation of 8,000? 4. Incorporated Company's net income during the year is 5,000,000 before the interest on borrowing made at the beginning of the year with principal amount of 1,000,000 and interest rate of 10%. (1) Compute the Net Income. (2) Compute the EBIT Operating Cash Flow 1. ABC Company's statement of financial performance is presented below Sales Cost of Sale Gross Profit 10,000,000.00 -6,000,000.00 4,000,000.00

Valuation Methods Prelim Drill 2 Earning Before Interest Tax and Depreciation 1. Kabebe Inc. earned 200,000 net of 400,000 for salaries expense, 100,000 for utilities expense, 20,000 for supplies expenses, 25,000 for depreciation of capital assets. 5,000 for interest payments, and 50.000 for taxes Compute for the EBITDA. 2. Cho-choco Company's applicable tax rate during the year is 20%. The interest paid during the year is 20,000. Compute the EBITDA if the Net Income is 450,000 and Depreciation expense is 40,000 3. If the Earning Before Interest but after Tax is 70,000, interest rate is 20% and tax rate is 30%, how much is EBITDA assuming depreciation of 8,000? 4. Incorporated Company's net income during the year is 5,000,000 before the interest on borrowing made at the beginning of the year with principal amount of 1,000,000 and interest rate of 10%. (1) Compute the Net Income. (2) Compute the EBIT Operating Cash Flow 1. ABC Company's statement of financial performance is presented below Sales Cost of Sale Gross Profit 10,000,000.00 -6,000,000.00 4,000,000.00

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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Valuation Methods Prelim Drill 2 Earning Before Interest Tax and Depreciation 1. Kabebe Inc. earned 200,000 net of 400,000 for salaries expense, 100,000 for utilities expense, 20,000 for supplies expenses, 25,000 for depreciation of capital assets, 5.000 for interest payments, and 50.000 for taxes Compute for the EBITDA. 2. Cho-choco Company's applicable tax rate during the year is 20%. The interest paid during the year is 20,000. Compute the EBITDA if the Net Income is 450,000 and Depreciation expense is 40,000 3. If the Earning Before Interest but after Tax is 70,000, interest rate is 20% and tax rate is 30%, how much is EBITDA assuming depreciation of 8,000? 4. Incorporated Company's net income during the year is 5,000,000 before the interest on borrowing made at the beginning of the year with principal amount of 1,000,000 and interest rate of 10%. (1) Compute the Net Income. (2) Compute the EBIT Operating Cash Flow 1. ABC Company's statement of financial performance is presented below 10,000,000,000,000 Inter -6,000,000.00 4,000,000.00 of PPE Sales Cost of Sale Gross Profit Salaries Expense Supplies and Materials Rent Expense Utilities Expense Depreciation Expense Doubtful Account Expense Interest Expense Total Expenses Net Income Before Tax Tax Expense Net Income Additional Info 1. The tax rate is 25% 2. Networking Capital increased by 750,000 during the year including the increase in cash of 250,000 Requirement: Compute the Operating Cash Flow Beginning Purchase 1,200,000.00 750,000.00 12,000.00 120,000.00 570,000.00 2.If EBITDA is 400,000, interest expense is 20,000, depreciation is 120,000 and tax rate is 20%, how much is the Operating Cash Flow Ending 8,000.00 32,000.00 2,692,000.00 3. If Net Income is 100,000, interest rate is 20% of net income and tax rate is 30%, How much is the Operating Cash Flow if the EBITDA is 200,000, and change in NWC is 20,000 decrease? CAPITAL EXPENDITURE 1. Consider the following T-account 1,308,000.00 327,000.00 981.000.00 20,000,000 50,000,000 60,000,000 Property Plant and Equipment Debit Credit 10,000,000 Sale
Transcribed Image Text:Valuation Methods Prelim Drill 2 Earning Before Interest Tax and Depreciation 1. Kabebe Inc. earned 200,000 net of 400,000 for salaries expense, 100,000 for utilities expense, 20,000 for supplies expenses, 25,000 for depreciation of capital assets, 5.000 for interest payments, and 50.000 for taxes Compute for the EBITDA. 2. Cho-choco Company's applicable tax rate during the year is 20%. The interest paid during the year is 20,000. Compute the EBITDA if the Net Income is 450,000 and Depreciation expense is 40,000 3. If the Earning Before Interest but after Tax is 70,000, interest rate is 20% and tax rate is 30%, how much is EBITDA assuming depreciation of 8,000? 4. Incorporated Company's net income during the year is 5,000,000 before the interest on borrowing made at the beginning of the year with principal amount of 1,000,000 and interest rate of 10%. (1) Compute the Net Income. (2) Compute the EBIT Operating Cash Flow 1. ABC Company's statement of financial performance is presented below 10,000,000,000,000 Inter -6,000,000.00 4,000,000.00 of PPE Sales Cost of Sale Gross Profit Salaries Expense Supplies and Materials Rent Expense Utilities Expense Depreciation Expense Doubtful Account Expense Interest Expense Total Expenses Net Income Before Tax Tax Expense Net Income Additional Info 1. The tax rate is 25% 2. Networking Capital increased by 750,000 during the year including the increase in cash of 250,000 Requirement: Compute the Operating Cash Flow Beginning Purchase 1,200,000.00 750,000.00 12,000.00 120,000.00 570,000.00 2.If EBITDA is 400,000, interest expense is 20,000, depreciation is 120,000 and tax rate is 20%, how much is the Operating Cash Flow Ending 8,000.00 32,000.00 2,692,000.00 3. If Net Income is 100,000, interest rate is 20% of net income and tax rate is 30%, How much is the Operating Cash Flow if the EBITDA is 200,000, and change in NWC is 20,000 decrease? CAPITAL EXPENDITURE 1. Consider the following T-account 1,308,000.00 327,000.00 981.000.00 20,000,000 50,000,000 60,000,000 Property Plant and Equipment Debit Credit 10,000,000 Sale
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