Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

plz answer as 3a 3b ecf The following information is computed from Fast Food Chain's annual report for 2006. 2005 2006 $ 2,731,020 10,960,286 $

plz answer as 3a 3b ecf
image text in transcribed
The following information is computed from Fast Food Chain's annual report for 2006. 2005 2006 $ 2,731,020 10,960,286 $ 2,364,916 B,516,833 Current assets Property and equipment net Intangible assets at cost less applicable amortization 294, 275 $13.986.081 255,919 $11. 137.668 $ 2,210,735 26,000 Current liabilities Deferred federal income taxes Mortgage note payable Stockholders equity 6. 3,168,123 160,000 456,000 10, 201,958 $13.986.081 8,900,933 511132668 Net sales Cost of goods sold Selling and administrative expense Interest expense Income tax expense Net income $33,410,599 $25,804,285 (30,168,715) (23, 159,745 (2,000,000) (1,500,000) (216,936) (39,456) (400,000) (300,000) 624,949 B05084 What is book value in 2006? In 2005? Assume depreciation and amortization expense of $1,096,029 in 2006 and $851,683 in 2005. What is EBITDA for 2006? For 2005? What multiple of EBITDA do you believe is suitable to value this business, and why? What would you determine the value of this business to be at the end of 2006 2005

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson

10th edition

978-1133940593

Students also viewed these Accounting questions