Question
Assignment Questions math experts i need your help Q1 (1.5 marks) Ahlam Companys net income for the year 2000, is $3,700,214. The company had an
Assignment Questions math experts i need your help
Q1 (1.5 marks)
Ahlam Companys net income for the year 2000, is $3,700,214. The company had an EBITDA of $ 10,125,300, and its depreciation and amortization expense was equal to $2,543,790. The company's average tax rate is 35 percent.
- What is the amount of interest expenses for the firm? (Show the details of your calculations).
- Prepare a common-sized Income Statement if net sales equal $12,000,000.
Q2. (1 Mark)
The following are accounts balance (in thousands) for Malak Company. Calculate Net Income after-tax (show intermediate steps) t=35% for the year ended December 31, 2020.
Net property and equipment | $ 2,000 |
Accounts receivable | $3,000 |
Notes payable | $37,000 |
Revenues | $ 983,000 |
Supply expenses | $ 255,000 |
Depreciation expenses | $ 35,000 |
Labor expense | $300,000 |
Interest Expenses | $11,000 |
Stockholders Equity | $61,500 |
Cash & cash equivalents | $97,000 |
Long-term debt | $3,500 |
Q3. Calculate the following ratios from the Balance Sheet and the Income Statement given below: (1.5 Mark)
- Current Ratio
- Debt Ratio
- Fixed asset turnover
- Total asset turnover
- Operating profit margin
Balance Sheet: | ||
Cash | 30,000 | |
Acct/Rec | 72,500 | |
Inventories | 50,000 | |
Current assets | 152,500 | |
Net fixed assets | 240,000 | |
Total assets | 392,500 | |
Accts/Pay | 44,500 | |
Accrued expenses | 31,000 | |
Short-term N/P | 9,500 | |
Current liabilities | 85,000 | |
Long-term debt | 110,000 | |
Owner's equity | 197,500 | |
Total liabilities and owners equity | 392,500 | |
Income Statement: | ||
Net sales | 450,000 | |
COGS | 220,000 | |
Gross profit | 230,000 | |
Operating expenses | 128,000 | |
Net operating income | 102,000 | |
Interest expense | 18,500 | |
EBT | 83,500 | |
Income taxes | 33,000 | |
Net income | 50,500 |
Q4. Using the values below, answer the questions that follow: (1mark)
Amount of annuity: $500
Interest rate: 9%
N=10 years
- Calculate the future value of the annuity, assuming that it is
- An ordinary annuity.
- An annuity due.
- Compare your findings in parts a(1) and a(2). All else being identical, which type of annuityordinary or annuity dueis preferable as an investment? Explain why.
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