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
Ainat [17]
3 years ago
9

Crane Corporation recently reported an EBITDA of $29.60 million and net income of $9.7 million. The company had $6.8 million in

interest expense, and it's average corporate tax rate was 35 percent. What was its depreciation and amortization expense?
Business
1 answer:
vesna_86 [32]3 years ago
8 0

Answer:

$7.88 million

Explanation:

Net Income = (EBITDA- Interest - Dep)*(1-tax)

Net income = 9.7

Earnings before interest, taxes, depreciation and amortization; EBITDA = 29.60

Interest = 6.8

tax = 35% or 0.35

9.7 = (29.60 - 6.8 - Dep)(1-0.35)

9.7 = (22.8 - Dep)*0.65

Divide both sides by 0.65

9.7/0.65 = 22.8- dep

14.9231 = 22.8 -dep

Dep = 22.8 - 14.9231

Dep = 7.8769

Therefore, depreciation and amortization expense is $7.88 million

You might be interested in
You have $1200 to invest in a bank account with an interest rate of 5.5%, compounded monthly. After how many years will your acc
nekit [7.7K]
Sick my ppgghf was fever gmyhrr the centnulPimi I’m
8 0
3 years ago
Research conducted on firms' dividend policies over time support which one of the following conclusions?A. Aggregate dividends a
liberstina [14]

Answer:

The correct option is C.

Explanation:

When the research is taken place or conducted on the dividend of the firm, so this support the conclusion that the managers tend to change or smooth the dividends as the research is conducted in order to find out that the established dividend policy will not affecting the business or firm in any manner and if something affecting then managers could change or smooth the dividends for the benefit of the business.

The Correct option is C.

8 0
3 years ago
Why is understanding the relationship between the cash conversion cycle (CCC) and net working capital important to the contempor
murzikaleks [220]

Answer: To understand how businesses need money and how they can sustain themselves for a period of time to fund bills and still operate

Explanation:

Understanding the relationship between cash conversation cycle and contemporary business executive aims at knowing the business needs funds to operate and building strategic alliances, make money and propose ideas that will sustain and elevate it's strength for some time. Money is vital in running business operations, as organizations will foot bills and do some expenditure and sought out ways to earn more business.

8 0
3 years ago
Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required an
MAXImum [283]

Answer: $30000

Explanation:

Based on the information given in the question, the required reserve will be:

= $60000 × 25%

= $15000

Since the bank's required and excess reserves are equal, then the excess reserve will be $15000.

Therefore, the actual reserves will be:

= Required reserve + Actual reserve

= $15000 + $15000

= $30000

6 0
3 years ago
I'm contacting you to inquire about the suitable name for a water bottling company
mel-nik [20]
Hydro Drops

Hope that helps!!
8 0
3 years ago
Other questions:
  • The market potential is equal to the​ ________, or the sales limit approached by company demand as company marketing effort incr
    15·1 answer
  • Levi, a well-known lumber dealer with a good reputation, buys a load of lumberand pays for it with a check that is later dishono
    9·1 answer
  • Because companies spend more than half their revenue on purchases of goods and services, they should strategically manage key so
    8·1 answer
  • A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the
    12·1 answer
  • Dakota Company had net sales (at retail) of $260,000.
    13·1 answer
  • Arielle, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company
    13·1 answer
  • Clever Computers has a five-day workweek and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjust
    11·1 answer
  • is sueing someone for 50,000 dollars for no reason an example of integrity because recently a neighbor in my neighborhood was be
    15·1 answer
  • Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with el
    8·1 answer
  • Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups 22 material moves,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!