Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

THIS IS THE SECOND HALF OF THE QUESTION. TOP HALF IS ON MY LAST POST . The following information has been taken from the Nikeem

image text in transcribed

THIS IS THE SECOND HALF OF THE QUESTION. TOP HALF IS ON MY LAST POST

. The following information has been taken from the Nikeem Corporation's Profit & Loss statement for the 2020/2021 financial year: Total Revenue: $600,000 Cost of Goods Sold: $145,000 Total Operating Expenses: $17,000 Depreciation and Amortisation: $21,000 Total Interest Paid: $60,000 Income from other investments: $105,000 (Note: tax has already been paid) Income Tax Paid: $26k Calculate the following for the Nikeem Corporation: f) The Gross Margin [2 marks] g) The EBITDA [2 marks] h) The corporation's Earnings before Interest and Tax [2 marks] i) The corporation's Net Profit [5 marks] j) In a few words in general terms explain the relationship between Amortisation & Depreciation with respect to a corporation's cashflow statement. [2 marks] k) Briefly explain the difference between Accounts Receivable and Accounts Payable [2 marks] L) The company is thinking about raising the funds by issuing bonds to the market. List three key factors that affect the value of a Bond that the investor needs to be aware of. [2 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Accounting Text And Cases

Authors: Robert Anthony, James S. Reece, Kenn Merchant, David Hawkins

11th International Edition

0071232265, 978-0071232265

More Books

Students also viewed these Accounting questions

Question

=+a) What time series components do you observe in this series?

Answered: 1 week ago

Question

Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

What is meant by decentralisation?

Answered: 1 week ago