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Use the following information to answer questions 28-29. 2016 adjustments Proforma Revenues 12,000 COGS 4,000 SG&A 2,000 Depreciation 500 Operating Income 5,500 Debt 20,000
Use the following information to answer questions 28-29. 2016 adjustments Proforma Revenues 12,000 COGS 4,000 SG&A 2,000 Depreciation 500 Operating Income 5,500 Debt 20,000 Assume that this company made an acquisition of a company with 6,000 of sales with similar gross margins to the existing company. Assume additional SG&A expenses of $500. Assume the purchase was financed with $14,000 of additional debt. (Note-Basically, you need to fill in the adjustments column and the proforma column based on the information given. However, if you have trouble with formatting you don't need to actually fill in those columns on the test-calculating the answer to #28 and #29 will demonstrate that you filled in the columns correctly, even if you didn't show it on the test.) 28. Calculate Debt/EBITDA after making the proforma adjustments. 29. Calculate EBITDA/interest after making the proforma adjustments.
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