1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
How does the FDIC monitor banks?
Lynna [10]

FDIC monitor banks by analyzing Call Report data and examination findings relative to the emerging trends.

The FDIC monitor banks to ensure that they are operating within the bounds of the law and are not engaging in any illegal or unsafe practices. They also work to ensure that banks are providing customers with the best possible service and are protecting their deposits

If the FDIC finds that a bank is not meeting these standards, they will take action to correct the situation. As a result, the FDIC has a better understanding of the risks that banks face and is better equipped to protect consumers from financial fraud.

To know more about banks, click here.

brainly.com/question/14042269

#SPJ4

7 0
1 year ago
Grossman lumber reported $102,000 net cash provided by its operating activities. if the company invests $4,000 in capital expend
sweet [91]

FCF is a measure of how much cash a business generates from operations, net of capital expenditures, which it can use for various purposes, such as reducing debt or paying out dividends. When calculating FCF, we take Cash provided by operating activities and subtract any capital expenditures. Grossman Lumber generated $102,000 in cash from operations, and invested 4,000 in capital expenditures, so its FCF is 102,000-4,000= $98,000. We are not concerned with dividends because dividends are not a capital expenditure. 

6 0
3 years ago
repare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the
Umnica [9.8K]

Question Completion:

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,509,000 567,040 941,968 1,036,000 $ (94,040) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division Central $389,000 $600,000 $520,000 East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 27% 36% $283,000 $336,000 $203,000

Prepare a contribution format income statement segmented by divisions Division Total Company East Central West

The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 19%.

Answer:

Wingate Company

a. Contribution format income statement segmented by divisions

Division                            Total Company        East      Central        West

Sales                                   $ 1,509,000   $389,000  $600,000  $520,000

Variable expenses                   567,040      217,840      162,000      187,200

Contribution margin                 941,960     $171,160   $438,000   $332,800

Traceable fixed expenses      822,000  $283,000   $336,000  $203,000

Non-traceable fixed expense  214,000

Net operating income (loss) $ (94,040)   ($111,840)   $102,000  $129,800

b. If the marketing department's proposal is implemented, the net operating loss will decrease by $38,232, i.e from $94,040 to $55,808.

Explanation:

a) Data and Calculations:

Wingate's most recent monthly contribution format income statement:

Sales                                   $ 1,509,000

Variable expenses                   567,040

Contribution margin                 941,968

Fixed expenses                     1,036,000

Net operating income (loss) $ (94,040)

Additional information:

Division                                 Central       East          West

Sales                                   $389,000  $600,000  $520,000

Variable expenses as a

 percentage of sales                 56%           27%           36%

Traceable fixed expenses $283,000  $336,000 $203,000

Increase in Division West's fixed expenses by $25,000

Expected increase in Division West's sales = 19%

Contribution format income statement segmented by divisions

Division                            Total Company        East      Central        West

Sales                                   $ 1,509,000   $389,000  $600,000  $520,000

Variable expenses                   567,040      217,840      162,000      187,200

Contribution margin                 941,968     $171,160   $438,000   $332,800

Traceable fixed expenses      822,000  $283,000   $336,000  $203,000

Non-traceable fixed expense  214,000

Net operating income (loss) $ (94,040)   ($111,840)   $102,000  $129,800

Based on new proposal:

Contribution format income statement segmented by divisions

Division                            Total Company        East      Central        West

Sales                                   $ 1,607,800   $389,000  $600,000   $618,800

Variable expenses                  602,608      217,840      162,000    222,768

Contribution margin              1,005,192     $171,160   $438,000  $396,032

Traceable fixed expenses      847,000  $283,000   $336,000  $228,000

Non-traceable fixed expense  214,000

Net operating income (loss) $ (55,808)   ($111,840)   $102,000  $168,032

5 0
2 years ago
Document that prohibits sharing information with anyone else?
mamaluj [8]

Answer:

RODO (GDPR) – Rozporządzenie o Ochronie Danych Osobowych.

Explanation:

Celem regulacji jest zapewnienie swobodnego przepływu danych osobowy ch pomiędzy państwami członkowskimi, ale także wprowadzenie zasad, zgodnie z którymi przetwarzanie danych osobowych będzie ujednolicone na terenie cał.ej Unii Europejs..kiej

7 0
3 years ago
A time standard was set as 0.20 hour per unit based on the 20th unit produced. Assume the task has a 60 percent learning curve.
Sliva [168]

Answer:

40th unit = 0.11 hr

80th unit = 0.06 hr

160th unit = 0.03 hr

Explanation:

Given :

$T_{20} = 0.2$

Learning rate = 60% = 0.6 (r)

Now using the learning curve equation,

$ T_n = T_1(n)^b$

where b is  $b= \frac{\ln r}{\ln 2} = \frac{\ln 0.6}{\ln 2} $  = -0.833

Now

$ T_{20} = T_1(20)^{-0.833}$

$ 0.20 = T_1 (0.0824)$

$T_1$ = 2.5

For 40th unit

$ T_{40} = 2.5(40)^{-0.833}$

      = 0.11 hrs

For 80th unit

$ T_{80} = 2.5(80)^{-0.833}$

      = 0.06 hrs

For 160th unit

$ T_{160} = 2.5(160)^{-0.833}$

        = 0.03 hr

6 0
3 years ago
Other questions:
  • If the demand curve is very elastic and the supply curve is very inelastic in a market, then the sellers will bear a greater bur
    6·1 answer
  • One advantage of preferred stock over common stock is that preferred stockholders
    14·2 answers
  • One interesting thing about incentive approaches is that incentives
    9·1 answer
  • The price and quantity determined in a market when the supply equals the demand, the market is in the state of
    13·1 answer
  • You are responsible for company purchases. You are talking to a salesman from a vendor who wants to sell to your company. You te
    7·1 answer
  • Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked
    8·1 answer
  • For which of the following types of economies would the factors of production depend on the relative distribution of market forc
    8·1 answer
  • Andrews corporation has income from operations of $227,000. in addition, it received interest income of $22,700 and received div
    13·1 answer
  • Balthazar Corporation has total assets of 582, total equity of 269, and a return on equity of 13.98%. The ROA for Balthazar is__
    12·1 answer
  • Because of competitive pressures, some firms have used packaging and labeling practices that are questionable, misleading, decep
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!