Assignment Questions

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.

a. What is the amount of interest expenses for the firm? (Show the details of your calculations).

b. Prepare a common sized Income Statement if net sales equal $12,000,000.

Q2. (1 Mark)

The following are accounts balance (in thousands) for MalakCompany. 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)

a. Current Ratio

b. Debt Ratio

c. Fixed asset turnover

d. Total asset turnover

e. 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 ownersequity		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

a) Calculate the future value of the annuity, assuming that it is

(1) An ordinary annuity.

(2) An annuity due.

b) 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.

Assignment Questions Q1 (1.5 marks) Ahlam Company's net income for the year 2000, is $3,700.214. The company had an EBITDA of S 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 equipments 2.000 53.00 S983.000 S255 Accounts receive Notes able Revenue Supply expres De Ehren Saterest Stockholders' Cash & cash va Isso 151 $61.500 597.000 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 72.00 Balaner Short Kai Acte aventures Cursus Net fixed Total 153250 4. 1922 50 4 31.0 9.50 Act Pay Accrual per She NP Current litis debt Chersity Totallaties and ity 197.500 1930 Income Statement Net sales KOS Crispit Operating expenses Nel pering HISODE 20.000 230.00 128.00 interest NTIC ERT The tases 11 so Q3. Calculate the following ratios from the Balance Sheet and the Income Statement given below: (1.5 Mark) a. Current Ratio b. Debt Ratio . Fixed asset turnover Total asset turnover c. Operating profit margin Balance Sheet: Cash Acct/Rec Inventories Current assets Net fixed assets Total assets 30,000 72.500 50,000 132.500 240,000 392.500 Accts/Pay 44,500 Accrued expenses 31.000 Short-term NP 9,500 Current liabilities 85.000 Long-term det 110,000 Owner's equity 197.500 Total liabilities and owners equity 392,500 450,000 220.000 230,000 128.000 Income Statement: Net sales COGS Gross profit Operating expenses Net operating income Interest expense EBT Income taxes Net income 102.000 18,500 83,500 33.000 50,500 Q4. Using the values below, answer the questions that follow: (Imark) Amount of annuity: $500 Interest rate: 9% N=10 years a) Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b) Compare your findings in parts a(l) and a(2). All else being identical, which type of annuity-ordinary or annuity due is preferable as an investment? Explain why