Solution-What will their annual loan payment be

What will their annual loan payment be

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Reference no: EM133115794

Question - Given below is the income statement developed by Vera. Calculate the missing numbers (A, B, C, D, E) in it. [Show your work]

Statement of Comprehensive Income

	2017	2018
Sales	360,437.00	491,810.00
Cost of goods sold	154,040.00	256,886.00
Selling & administrative	32,223.00	92,058.00
Depreciation	A	62,282.00
EBIT	99,110.00	B
Interest	11,056.00	C
EBT	88,054.00	69,058.00
Taxes (20%)	17,610.80	D
Net income	70,443.20	55,246.40
Dividends	27,621.60	E
Addition to retained earnings	42,821.60	47,921.40

Erindale Bank offers Premier Snowboards a $80,000, 5-year term loan at 3.5% annual interest.

a. What will their annual loan payment be?

b. Using the information from Question 3, how will this impact the Times Interest Earned ratio if these additional interest charges were added to existing interest expense?

c. Should Erindale bank be concerned?

Reference no: EM133115794

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What will their annual loan payment be

Reference no: EM133115794

Reference no: EM133115794

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