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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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Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128
a_sh-v [17]

Answer:

The $623,100 is the amount which  should be used as the initial cash flow for this project

Explanation:

The computation of the initial cash flow is shown below:

= Estimated cost of a new facility on the site + market value of a lot

= $494,200 + $128,900

= $623,100

The asset value should be recorded in the market value so we took the estimated cost and the market value in the calculation part.

The other cost which is given in the question is irrelevant. Thus, it is not considered in the computation part.

4 0
3 years ago
On december 31, 2015, cool wear inc. had balances in accounts receivable and allowance for uncollectible accounts of $41,000 and
Wewaii [24]

$6,000.00 - ($2,050.00 - $750.00) =

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Bad debt expense for 2019 would be: $4,700.00

6 0
3 years ago
Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus
Evgen [1.6K]

Answer:

0.5

Explanation:

Marginal propensity to consume is the proportion of the increase in disposable income spent on consumption.

Marginal propensity to consume = change in consumption/ increase in disposable income

$500 / $1000 = 0.5

I hope my answer helps you

8 0
3 years ago
Which factors can affect a stock's price? Check all that apply.
Tanya [424]
I have no idea haha but how’s your guys day going
8 0
3 years ago
What was Roosevelt's big stick foreign policy?
ra1l [238]

Roosevelt's "big stick" foreign policy meant that the United States would engage in diplomatic negotiations while retaining the ability to use force if necessary.

<h3>What are some examples of Roosevelt's big stick strategy?</h3>

Numerous instances in foreign affairs, President Roosevelt employed big stick policy. He negotiated a peace deal between Russia and Japan, expanded American influence in Cuba and more.

<h3>How did America benefit from the "big stick" policy?</h3>

Roosevelt was successful in keeping the United States out of wars by threatening legitimately with force under his "big stick" strategy.

<h3>How was the "big stick" approach applied in Panama?</h3>

Roosevelt used the "big stick" to put down the Colombian uprising by aiding the Panamanian people. He dispatched American battleships to the Colombian coast in November 1903 to prevent it from putting down the revolt in Panama.

To know more about big stick, visit:

brainly.com/question/22391573

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8 0
1 year ago
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