Yaya Inc. has earnings before interest and taxes of P4,750,000. The company’s total depreciation and amortization expense is P870,000. The company is not paying any interest arising from any financing cost. The net investment in the operating capital of the company is P1,570,000. The company has a 30% tax rate. What is Yaya’s net operating profit after taxes?
Yaya Inc. has earnings before interest and taxes of P4,750,000. The company’s total depreciation and amortization expense is P870,000. The company is not paying any interest arising from any financing cost. The net investment in the operating capital of the company is P1,570,000. The company has a 30% tax rate. What is Yaya’s net operating profit after taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Yaya Inc. has earnings before interest and taxes of P4,750,000. The company’s total depreciation and amortization expense is P870,000. The company is not paying any interest arising from any financing cost. The net investment in the operating capital of the company is P1,570,000. The company has a 30% tax rate. What is Yaya’s net operating profit after taxes ?
2. In 2021, Horsey Inc.'s net income doubled from the 2020 figure. The number of outstanding shares is constant at 100,000. The pay-out ratio is constant at 30%. If in 2021 the company paid P15 per shareholder, how much is the total net income in 2020?
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