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Nonamiya [84]
3 years ago
6

Carla Vista Corporation recently reported an EBITDA of $30.70 million and net income of $9.7 million. The company had $6.8 milli

on in interest expense, and it's average corporate tax rate was 35 percent. What was its depreciation and amortization expense? (Round answer to 2 decimal places and enter your answer in dollars, e.g. 9,700,000.25)
Business
1 answer:
Bess [88]3 years ago
4 0

Answer:

$8,976,923.08

Explanation:

The computation of the  depreciation and amortization expense is shown below:

= EBITDA - EBIT

where,

EBITDA $30,700,000        

Now the EBIT = EBT + Interest

where,

EBT = (Net income) ÷ (1 - tax rate)

       = ($9.7 million) ÷ (1 - 0.35)

       = $14,923,076.92

And, the interest is $6,800,000

So, EBIT = $14,923,076.92 + $6,800,000 = $21,723,076.92

So, the depreciation and amortization expense  is

= $30,700,000 - $21,723,076.92

= $8,976,923.08

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The formula for calculating the present value factor for an annuity of $1 is a. Amount to Be Invested/Equal Annual Net Cash Flow
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Answer:

a. Amount to Be Invested/Equal Annual Net Cash Flows

Explanation:

The formula to calculate the present value factor by considering annuity is shown below:

= Invested amount ÷ Equally Annual net cash flows

As an annuity is a set of payments made at the equal periods

Simply we divide the invested amount by the equal amount of annual net cash flows so that the Present value factor of an annuity can be computed

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3 years ago
3. If the Wall Street Journal published an article w/ the headline "Poultry Farmers Detect Infectious Avian Bird Flu," what woul
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Answer:

If such a headline was published, the demand for chicken and its byproducts would plummet. The demand curve would shift to the left, meaning that the quantity demanded would decrease at all price levels.

The quality of the chicken and its byproducts has changed here, since they would turn into potentially unhealthy food.

The determinant of the demand for chicken products that is altered by this article is consumer preferences. The health of consumes is at risk, which would alter their preferences due to fear of getting sick.

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3 years ago
The level of liquid assets that should be invested in marketable securities depends on several factors. This includes all except
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Answer:

c.

Explanation:

Based on the information provided within the question it can be said that the exception of the answers provided are seasonal cash requirements. This refers to the amount of cash you or the company needs to pay for unique expenses during a specific season. Which is not a factor when deciding what should be invested in marketable securities.

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3 years ago
The period before a trial takes place is called the
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Answer:

The answer would be A.

Explanation:

Discovery process, finding the facts.

4 0
2 years ago
Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite ac
Ratling [72]

Answer:

Explanation:

:

Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Sharon takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Amy takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.  

a. What is each roommate’s opportunity cost of making a pizza?

Each room mates opportunity cost of making pizza is the beer they would have made with the time spent on making pizza which is

Sharon = 2/4 gallon of beer or 0.5 gallon of beer

Amy = 4/6 gallon of beer or 0.67 gallon of beer

Who has the absolute advantage in making pizza?  

Sharon arguably has absolute advantage because she has comparative advantage in producing both items because she spends less time producing both however she spends half the time of Amy in producing Pizza in particular

Who has the comparative advantage in making pizza?  

Sharon because she spends half the time of Amy in producing Pizza  

b. If Sharon and Amy trade foods with each other, who will trade away pizza in exchange for root beer? Amy will trade pizza for root beer because she has a greater disadvantage in Pizza production in relation to root beer when compared to Sharon. She spends double the time of Sharon in making Pizza but less than double the time of Sharon in making root beer

c. The price of pizza can be expressed in terms of gallons of root beer.  

Sharon = 2 hours/4 hours gallon of beer or 0.5 gallon of beer per pizza

Amy = 4 hours/6 hours gallon of beer or 0.67 gallon of beer per pizza

What is the highest price at which pizza can be traded that would make both roommates better off?  

That price should be lower than Amy's cost but higher than Sharon's cost, so they can both make profits. = (0.5+0.67)/2 = 0.585 gallon of root beer

What is the lowest price? Explain.

The lowest price will be the opportunity cost of Sharon which is 0.5 gallon of root beer because if the price is lower it becomes a loss to Sharon

3 0
3 years ago
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