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Dmitriy789 [7]
3 years ago
12

Byron Books Inc. recently reported $13 million of net income. Its EBIT was $32.5 million, and its tax rate was 35%. What was its

interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $13 million of net income by (1 - T) = 0.65 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:
Setler79 [48]3 years ago
5 0

Answer:

Interest amount = $12,500,000

Explanation:

Earnings Before Tax:

= Net income ÷ (1 - T)

$13,000,000 ÷ 0.65

= $20,000,000

That is the income before tax.

Since EBIT was $32,500,000, the Interest is the difference between EBIT and the EBT which is shown as follows:

= $32,500,000 - $20,000,000

= $12,500,000

So, the interest amount = $12,500,000

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Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low price
zalisa [80]

Answer: Focused cost leadership

Explanation:

Focused cost leadership could be described as targeting your market to a category of people only and not necessarily everyone. Some businesses do have a target market in mind when carrying out their production or sales. Their product isn't for everyone but this particular persons. They could design it from a normal general product but they will make it look perculiar and specific for this targeted market.

7 0
3 years ago
Hushovd Iron Works has collected the following data for its Thunderbolt line of products:Direct materials standard 10 pounds per
Dima020 [189]

Answer:

The correct answer is D: $3500 unfavorable

Explanation:

Giving the following information:

Standard:

Direct materials standard 10 pounds per unit

Direct materials standard cost $0.75 per pound

Actual:

Material purchased cost $0.85 per pound

Direct materials purchased 40,000 pounds

Direct materials used 35,000 pounds

Finished goods produced 4,500 units

Direct material price variance= (SP-AP)*AQ

SP= standard price

AP= actual price

AQ= standard quantity

Direct material price variance= (0.75-0.85)*35000

Direct material price variance= $3500 unfavorable

7 0
3 years ago
Using the interest method, the journal entry to record the first interest payment and the related amortization for bonds issued
slavikrds [6]
A. Debit; Premium on Bonds Payable
6 0
3 years ago
In general, a larger R squared tends to suggest that:_______.
stiks02 [169]

Answer:

c. the estimated sample regression function explains a greater percentage of the explained variation in y

Explanation:

The above is the reason showing the direct correlation between the sample regression and the R Square value.

7 0
3 years ago
The span of control for a manager: a. should never exceed 7 subordinates. b. varies somewhat from manager to manager, but most m
Alisiya [41]

Answer:

c. depends on a number of factors, and can vary from one manager, location and type of employees.

Explanation:

A manager can be defined as an individual who is saddled with the responsibility of supervising and ensuring his subordinates (employees) are working effectively and efficiently with the organization's goals and objectives.

In Business management or human resource management, span of control can be defined as the number of subordinates or junior level staffs who are directly controlled by a superior (manager).

Basically, the span of control for a manager depends on a number of factors, and can vary from one manager, location and type of employees.

<em>This ultimately implies that, span of control is directly proportional to the organizational structure and any other factor around them.</em>

3 0
3 years ago
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