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Aloiza [94]
3 years ago
13

The company recently reported an EBITDA of $22.5 million and $5.4 million of net income. The company has $6 million interest exp

ense and the corporate tax rate is 40 percent. What was the company’s depreciation and amortization expense?
Business
1 answer:
blsea [12.9K]3 years ago
6 0

Answer:

Depreciation and amortization is $7.5 million

Explanation:

If the tax rate is 40%, then the  net income is 60%

tax expense=net income*tax rate/60%=$5.4 million/60%*40%=$3.6 million

Depreciation and amortization=EBITDA-tax-interest-net income

EBITDA is $22.5 million

interest is $6 million

net income is $5.4 million

Depreciation and amortization=$22.5 milion-$6 million-$3.6 million-$5.4 million

Depreciation and amortization=$7.5 million

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On January 2, 2018, Baltimore Company purchased 14,000 shares of the stock of Towson Company at $13 per share. Baltimore obtaine
Norma-Jean [14]

Answer:

$315,600

Explanation:

Ownership = 40%

Investment = $182,000                

Share of dividends = 40%*21,000 =8400

Share of income = 40%*75000 = 30000

Increase in share price = $21-$13= $8

                                                                                 investment

                                                                   Dr                                        Cr

Investment                                     $182,000

Dividend received                                                                              $8400

Income received                              $30,000

Increase in share price                    $112,000

                                                         324,000                                      315,600

                                                   

5 0
3 years ago
Xbox video game consoles were developed through a joint venture between Microsoft and the WWE (World Wrestling Entertainment). P
SSSSS [86.1K]

Answer:

The Implementation Phase

Explanation:

A marketing plan refers to a a future course of action relating to marketing tactics a firm is planning to employ and specifies the goals and objectives which are to be achieved. It provides direction and guides marketing efforts in a single direction i.e towards attainment of marketing objectives.

A strategic marketing plan is an in-depth marketing plan which specifies the long term marketing strategies, the markets in which the firm shall compete, the target customers and the means to attain marketing goals.

Such a plan incorporates the following phases:

  1. Analysis : It means situational analyses and assessing organizational strengths and weaknesses and matching them with environmental threats and opportunities.
  2. Planning: This involves conducting marketing research and product testing and also planning for the price, promotion and distribution of products.
  3. Implementation: It refers to putting the plans into action and placing the products in the market based upon the distribution channel and markets planned for in previous stages.
  4. Control: This refers to analyzing sales, profit margins and customer satisfaction. Measuring the deviations against figures as anticipated and making necessary modifications in the marketing strategy accordingly.

In the given case, the video game company had planned well w.r.t it's joint venture and strategy but failed to implement it effectively. This points to the company failing at the implementation phase of the strategic marketing process.

8 0
3 years ago
Alice's pasta kitchen makes quality pasta and sells its products to customers in other countries. this is an example of ___
ololo11 [35]
<span>Exporting. Exporting means sending goods or services produced in one country to another country. This is usually carried out with the intention of boosting revenue. Alice, in this instance, is referred to as an exporter; Exporting has a direct influence on a country's economy including but not limited to improving untapped markets, lower unit cost, minimising the effects of seasonal fluctuations in sales and many more.</span>
8 0
3 years ago
Which of the following is SIQ most likely to
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The answer: is E
Explain: hope this helps
3 0
3 years ago
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Oxana [17]

Answer:

$168,250

Explanation:

Total Cash Collection would include cash collected from both Cash Sales and Credit Sales.

<u>Summary for Calculation of January Cash Collected</u>

Cash Sales                                                        $60,000

Credit Sales :

For January Sales ($160,000 × 45%)              $72,000

For December Sales ($55,000 × 55%)           $30,250

For November Sales ($30,000 × 20%)             $6,000

Total Collection                                               $168,250

Conclusion :

The total cash collected during January by LaGrange Corporation would be $168,250

3 0
3 years ago
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