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Luden [163]
3 years ago
8

eBook Problem Walk-Through Byron Books Inc. recently reported $12 million of net income. Its EBIT was $28.6 million, and its tax

rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $12 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Business
1 answer:
snow_lady [41]3 years ago
4 0

Answer:

Earnings Before Tax (EBT) =  $16,000,000

Interest expense = $12,600,000

Explanation:

Earnings Before Tax (EBT) =  Net Income  / (1 - Tax Rate)

Earnings Before Tax (EBT) =  $12,000,000 / ( 1 - 0.25)

Earnings Before Tax (EBT) =  $12,000,000 / 0.75

Earnings Before Tax (EBT) =  $16,000,000

Interest expense =  Earnings Before Interest and taxes (EBIT) - Earnings Before taxes (EBT)

Interest expense = $28,600,000 - $16,000,000

Interest expense = $12,600,000

              Income Statement

Details                               Amount

EBIT                                  $28,600,000

Less: Interest expenses  <u>$12,600,000</u>

EBT                                   $16,000,000

Tax at 25%                       <u>$4,000,000</u>

Net Income                      $12,000,000

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DJ Company, a manufacturer, uses the indirect method for preparing its statement of cash flows. The company has provided the fol
guajiro [1.7K]

Answer:

$304,000

Explanation:

Calculation to determine How much was DJ's net income

Net cash inflow from operating activities ($262,000)

Less Account spayable decrease ($26,000)

Less Prepaid asset increase ($20,000)

Add Depreciation expense $32,000

Add Accounts receivable decrease $26,000

Add Loss on sale of depreciable asset $21,000

Add Wages payable increase $15,000

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Net income $304,000

Therefore DJ's net income is $304,000

4 0
3 years ago
Reason for a bimodel distribution
DedPeter [7]

The reason for a bimodel distribution is that a bimodal distribution may occasionally result from merging data from two processes or populations.

<h3>What is a bimodel distribution?</h3>
  • Two modes comprise a bimodal distribution. In other words, the results of two distinct processes are integrated into a single collection of data.
  • The distribution sometimes goes by the name "double-peaked." Consider the distribution of production data over two shifts in a manufacturing facility.
  • Bimodal distributions frequently happen as a result of underlying events.
  • A bimodal distribution, for instance, can be seen in the amount of patrons who visit a restaurant each hour because people typically eat out for lunch and dinner.
  • The bimodal distribution is brought on by the underlying human behavior.
  • If a data set has two modes, it is bimodal. This indicates that no particular data value has the highest frequency of occurrence. Instead, the highest frequency is tied between two data values.

Learn more about bimodel distribution here:

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I got asked out last week by one popular kids at school, i knew something was up; but instead i looked down......
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3 years ago
Suppose that after controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by t
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Answer:

Consider the following explanations

Explanation:

a. The whole argument is based on the controlling of different factors such as age, education and occupation among males and females. Now, this is very subjective how they have controlled occupation. For e.g. – Which all occupation they have considered for as stressful job, which all jobs they have considered as physical tiring jobs. Working in a refinery may be physical tiring job but then working in IT Company can also be tiring.

Therefore since there are lot of factors at play apart the one considered to calculate ratio’s we can say that these differential percentage points can always be more than or less than of what presented in question.

b. The same logic has to be applied to (b) as well. When we say that discrimination account for less than 8 percent of differential we implied to say that occupation nature may have more than 12 percent of differential. Now, if you use above logic and applied from occupation point of view.

4 0
3 years ago
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Albert and Alberta love the University of Florida and want to support the school in every way. They always like to drink Gatorad
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Answer:

A. Loyalty

Explanation:

Brand Equity is the term used to describe the identity of a specific brand that has been built to be recognized and followed by its customers with loyalty.

Loyalty related to Brand Equity is the main factor in placing product quality and image as one of the company's marketing strategies. This is because it makes the consumer "fall in love" with the product offered, refusing to exchange it for similar ones, but who do not have the same identity. An example of this can be seen in the question above, where Albert and Alberta refuse to stay at a gym that does not offer their favorite drink. Because of this, they prefer to leave this gym and look for one that provides the drink they want.

7 0
3 years ago
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