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Ivahew [28]
3 years ago
7

Smashed Pumpkins Co. paid $88 in dividends and $526 in interest over the past year. The company increased retained earnings by $

438 and had accounts payable of $522. Sales for the year were $16,055 and depreciation was $696. The tax rate was 38 percent. What was the company's EBIT?
Business
1 answer:
Andreas93 [3]3 years ago
8 0

Answer:

$1,374

Explanation:

With regards to the above, first, we will compute the net income.

Net income = Dividends + Increase in retained earnings

= $88 + $438 = $526

Therefore,

EBIT = [Net income / (1 - tax rate)] + Interest

= [$526 / (1 - 0.38)] + $526

= [$526 / 0.62] + $526

= $848 + $526

= $1,374

The company's EBIT is $1,374

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iris [78.8K]

Answer:

Cash payments + cash receipts = cash requirements

Explanation:

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It interprets the liquidity of the business organization whether organization has enough cash or it can be borrowed for running its organization

Therefore, the Cash payments + cash receipts = cash requirements is wrong as other equations that are given are right

7 0
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​Paul, the HR​ manager, works in the Townsville plant and reports to the plant manager​ there, but he also reports to the corpor
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Answer:

Letter B is correct. Unity of command.

Explanation:

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3 years ago
Understanding the legal ramifications what types of policies should organizations implement when using social media tools for re
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3 years ago
Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increas
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According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashin
kompoz [17]
After the word every the answer would be "students"

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