• Directions: Click the Case Link above and use the information provided in Frazier & Sons Inc., Part A, to answer this question: What was Frazier & Sons' earnings before interest, taxes, depreciation and amortization (EBITDA) for the year 20Y2?

This is a single choice question. Selections are automatically selected as you use arrow to move.

a. $45,500 b. $52,800 c. $59,800 d. $67,100

Frazier & Sons, Inc. Part A Frazier & Sons, Inc. Balance Sheets Ast December 31 2012 2011 $ $ ASSETS Current Assets Cash Marketable securities (Note 1) Accounts receivable-net Note 2) Inventory (Note 3) Prepaid expenses Other current assets (Note 4) Total current assets 2,100 10,000 143,900 184,100 12,000 11,000 384,000 5,700 6,500 91,900 126,600 0,200 7,800 250,700 Fixed assets Machinery and equipment Accumulated depreciation Net Fixed assets 119,600 (27,100) 92,500 75,800 (17.100) 58,800 Other noncurrent assets 1,300 1,300 Intangibles (Note 5) 5,900 5463,700 8,500 $ 317,300 TOTAL ASSETS $ $ 59,800 LIABILITIES AND EQUITY Current liabilities Accounts payable Current portion-LTD (Note 8) Notes payable-bank (Note 7) Accrued expenses Accrued taxes Total current liabilities 125,500 3,900 4,600 12,500 8,300 152,800 10,900 Deterred federal income taxes Long-term debt 9,100 71,500 Equity Capital Stock-per value $5.00 per shere) Additional pain capital Retained earnings Total equity 90,000 17,000 198,400 300,400 5 483,700 170,000 241,500 3 327,300 TOTAL LIABILITIES AND EQUITY Frazier & Sons, Inc. Part A Frazier & Sons, Inc. Income Statements Years Ended December 31 Net Sales (Note 8) Cost of goods sold Gr055 Profit 2012 $ 1.261,800 939,900 321,900 2011 $ 1,138,100 889,300 248,800 Operating expenses Bookkeeping Depreciation Insurance Office Supplies Provision for doubtful accounts Rent Salaries and wages Selling and promotion Shipping Utilities Interest Expense Amortization of patent nights Total operating expenses 12,400 10,100 6,600 10,700 14,300 9,700 184,300 22,300 10,000 7,900 1,400 800 271,200 11 000 8,400 7,000 9,200 10,400 8,800 120,200 11,200 9,700 6,900 800 203.400 Operating income 45,400 50,700 (10,000) Other income (expenses) Gain loss) on Sale of fored assets Protit before tax (2.000) 43,400 Income tax (Note 9) Net profit after tax The notes that follow are an integral part of these financial Statements. Frazier & Sons, Inc. Part A Notes to Financial Statements Note : Garketable securities are shown at the lower of cost or market Note 2: Accounts receivable are shown net of an allowance for uncollectible accounts of $8,400 in 2011 and $9.900 in 20Y2 Note 3: Inventory is shown at the lower of cost or market applied on a first-in, first-out (ITFO) basis. Inventory at the end of 20Y0 was $76,900. Note 4: Other current assets consist of notes receivable evidencing loans to an officer of the company. These loans are to be repaid next year. Note 5: Intangibles, including patents and copyrights are amortized over a period of 10 years, corresponding to their useful lives. Note 6: Long-term debt consists of an equipment loan for the purchase of new conveyor lines. Principal is payable over three years as follows: 20Y3 $3,900 2014 5,000 20Y54 ,100 Note 7: Notes payable-bank are 90-day notes. The amount shown is due for repayment on March 20, 20Y3. Note 8: Sales are recognized at time of shipment and are shown set of the 20Y2 sales retums totaling $13,000. Note : Provision is made for deferred income taxes resulting from differences between book and tax income. Depreciation is calculated using the declining balance accelerated depreciation method for income tax purposes were applicable. Tax credits are recognized in the year eamed