Question 4:

Analyze the following financial data for GHI Company:

• Revenues: $500,000
• Cost of Goods Sold: $300,000
• Operating Expenses: $120,000
• Depreciation: $20,000
• Interest Expense: $10,000
• Tax Rate: 25%

1. Calculate the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
2. Determine the Earnings Before Interest and Taxes (EBIT).
3. Compute the Net Income.
4. Calculate the Effective Tax Rate.
5. Determine the Interest Coverage Ratio.