Question 10

UVW Corporation has provided the following financial data:

• Revenue: $20,000,000
• Cost of Goods Sold: $12,000,000
• Operating Expenses: $5,000,000
• Depreciation Expense: $1,000,000
• Interest Expense: $500,000
• Tax Rate: 28%
• Net Income: $1,440,000
• Total Assets: $15,000,000
• Total Equity: $10,000,000

Requirements:

• Calculate the Gross Profit.
• Determine the Operating Profit (EBIT).
• Calculate the EBITDA.
• Determine the Interest Coverage Ratio.
• Calculate the Debt to Equity Ratio.