Solution-Determining the lindley operating income

Determining the lindley operating income

Assignment Help Accounting Basics

Reference no: EM13973466

Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hold, which is called non-operating income. Lindley Textiles recently reported $72,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT?

Reference no: EM13973466

Questions Cloud

Determine the work and heat transfer for each process all in : A piston-cylinder assembly contains 2lb of water, initially, at 100 lbf/in.2 and 400°F. The water undergoes two processed: in series: a constant-pressure process followed by a constant volume process. Sketch T-v and p-v diagrams showing the key state..

What mix of immigration policies would you recommend : You are the newly appointed immigration advisor to the Obama administration. You have been asked to prepare a brief report for the President outlining what type of immigration admissions and control policies he should adopt in order to provide the..

Alternatives for funding of usd : An English company with a subsidiary in the United States is seeking alternatives for funding of USD 20 MM to three years for its subsidiary.

Company focuses its marketing efforts : Retailers like Wal-Mart and Kmart are considered to be members of which organizational market?

Determining the lindley operating income : It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT?

What is a qualitative analysis : What is a qualitative analysis? Give one example on how this method can be used to improve performance in a healthcare setting. What is meant by the term "second shift." What proportion of household labor, on the average, do women perform

Warrant starting the business : The investor will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business?

What is the average power delivered to the tissues : A defibrillator is used to restart a persons heart after it stops beating. Energy is delivered to the heart by discharging a capacitor through the body tissues near the heart. If the capacitance of the defibillator is 9 pF and the energy delivered..

Detect intentional misstatements of liabilities : Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal finan..

User Account

All Pages

Determining the lindley operating income

Reference no: EM13973466

Reference no: EM13973466

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT