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Kitty [74]
2 years ago
7

INCOME STATEMENT Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%

. What was its interest expense? [Hint: Write out the headings for an income statement and fill in the known values. Then divide $3 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to complete similar problems.]
Business
1 answer:
Papessa [141]2 years ago
7 0

Answer:

Interest= $1000000

Explanation:

The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

<u>In this exercise:</u>

EBIT= $6000000

interest= ?

tax=? (0,40)

EBITDA=$3000000

interest= [EBITDA/(1-t)]-EBIT

interest=3000000/0,60-6000000=-$1000000

EBIT= 6million

Interest= 1million

Tax=2million (EBIT-interest)*0,40

Net income=3million

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The price of corn will increase  will definitely occur in the corn market.

Option A

<u>Explanation: </u>

Ethanol is a renewable fuel of several organic materials known as "biomass." Further, then 98% of U.S. petroleum includes ethanol, usually E10 to control air emissions, or E10 (10% ethanol, 90% gasoline). Oxygenation of petrol

Corn ethanol is the primary ethanol origin of ethanol fuel throughout the United States derived from corn biomass.

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Friends International is an NGO that fosters greater cultural awareness and understanding by arranging for people of different b
bulgar [2K]

Answer:

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Cr Prepaid Expenses 40,000

Explanation:

Friends International

Dr Travel Expenses 40,000

Cr Prepaid Expenses 40,000

Travel Expense for $40,000 was been DEBITED in order to recognize the expense associated with the use of the tickets and cPrepaid Expense for $40,000 was been CREDITED because the company no longer has the right to receive benefits from the prepaid tickets.

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Which of the following illustrates a tradeoff​? A. Randy enjoys ski vacations. B. I will study for my exam instead of going to t
aliya0001 [1]

A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B

8 0
2 years ago
Karl’s Sporting Goods started as a small shop catering to the fly-fishing crowd but as requests were made for different and vari
Tju [1.3M]

The full question is:

Karl's Sporting Goods started as a small shop catering to the fly-fishing crowd but as requests were made for different and varied goods, it branched out into an outdoor-sports store. Karl caters to his core customer base of hunters and fishermen, but stocks the latest outdoor gear for those who want to incorporate other sports such as backpacking into their hunting and fishing experience. Due to space limitations, he does not carry mountain bikes, but does carry gear for them. Since Karl's is not located near the ocean or a large body of water, he does not carry wetsuits or other watersports equipment, but he does carry gear that would be required for wading in cold mountain rivers and streams, and canoes and kayaks. His marketing is directed toward hunters and fishermen, but includes activities, events, and sales aimed at bringing outdoor enthusiasts with other interests into his store. Over the past month, he has received numerous request for rock climbing gear. As a result of these requests, Karl has entered into negotiations with three providers of high-quality rock climbing shoes and gear. What do Karl's activities show about his marketing for Karl's Sporting Goods?

Answer:

He has a marketing concept and is acting on it.

Explanation:

A marketing concept is the way by which businesses identify the needs of customers and come up with strategic ways of meeting those needs better than competing firms.

Different marketing concepts include: production concept, product concept, selling concept, marketing concept, and the societal marketing concept.

In the given scenario Karl's sporting goods only catered for fly fishers but as demand for other items increased they branched into other outdoor sport items.

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3 0
2 years ago
The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner h
charle [14.2K]

Answer: The answer is given below

Explanation:

Here , we are going to apply the present value of annuty formula.

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Net benefits= Present value of cash inflows - the intial socail opportnity cost

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Net benefits = 110000 × (1 - 1/1.04^20)/0.04 - (1100000)

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b. We will use the formula for present value of an annuity with the growth rate in benefits as 2 percent.

Firstly, dg= (0.04 - 0.02)/ (1+0.02)

= 0.01961

PV(benefits) = [($110,000)÷ (1+0.02)][1-(1+dg)-20]/dg]

= $1,770,045

NPV = $1,770,045 - $1,100,000= $670,045

7 0
2 years ago
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