What was ramco operating income

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1) Wellner Systems has the following balance sheet.

How much net operating working capital (NOWC) does the firm have?

Cash $ 300                                     Accounts payable $ 300

Accounts receivable 650                     Accruals 350

Inventory 550                                    Notes payable 450

Current assets $1,500                Current liabilities $ 1100

Net fixed assets 1,000                     Long-term debt 600

Common equity 300

Retained earnings 500

Total assets $2,500                Total liab. & equity $2,500

 

2) Ramco recently reported $30 million of sales, $15 million of operating costs and $3.00 million of depreciation. It had $9 million of bonds outstanding that carry a 5.0% interest rate, and its federal-plusstate income tax rate was 40%.

What was Ramco's operating income, or EBIT (a.k.a. "Operating income"), in millions?

3) Barco recently reported $25,000 of sales, $7,250 of operating costs and $2,750 of depreciation. It had $10,000 of bonds outstanding that carry a 5.0% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's earnings before taxes (EBT)?

 

 

 

 

Reference no: EM13287765

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