Calculate the ebit-tax and net income

Assignment Help Business Management

Reference no: EM13971247

Write the answers to the following questions in Word or Excel format, including your calculation and the results. Use the Attach File function below.

Consider the following income statement:

Sales	$734,800
Costs	$327,600
Depreciation	$102,000
EBIT	?
Tax (35%)	?
Net Income	?

1) Calculate the EBIT, Tax, and Net Income.

2) Calculate the OCF.

3) What is the depreciation tax shield?

Reference no: EM13971247

Questions Cloud

Calculation of economic value added : Why would the calculation of economic value added (EVA) alleviate the shortcoming of the return on investment measurement?

Shares of sirius satellite radio : You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $4.18 and $4.15, respectively. You place a market buy order for 590 shares that executes at these quoted prices. How much money did it cost to buy th..

Salem corporation uses the calendar year as its financial : Salem Corporation uses the calendar year as its financial and tax annual accounting period. Management, because of the seasonality of sales, wants to change to a fiscal year beginning April 1st through March 31st.

Annual income is necessary to maintain the purchasing power : If the rate of inflation is 3 percent, goods and services cost that $100 will cost how much at their retirement? How much annual income is necessary to maintain the purchasing power of their $100,000 current income?

Calculate the ebit-tax and net income : Write the answers to the following questions in Word or Excel format, including your calculation and the results. Use the Attach File function below.

Maintain a target capital structure : David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income of $400,000. The company wants to maintain a target capital structure of 30% debt and 70% equity. If the company follows the residual dividend policy, how muc..

Write a popular press article for a magazine : Write a popular press article for a magazine that focuses on developing a working supply chain process for a small business, both for the entire chain and for each link in the chain

How would the lees age affect your assessment : Calculate or use Worksheet 4 to determine their net worth and explain what it means. How would the Lees' age affect your assessment of their net worth?

Calculate the present value of the interest tax shields : Slash and Burn Construction Company currently has no debt and expects to earn $12 million in net operating income each year for the foreseeable future. The required return on assets for construction companies of this type is 12.5%, and the corporate ..

User Account

All Pages