Question
In: Finance
A firm reported the following income statement (all figures arein thousands of dollars):Net Sales...
A firm reported the following income statement (all figures are in thousands of dollars):
| Net Sales | 1,100 | |
| - | operating costs | 200 |
| - | depreciation & amortization | 230 |
| = | Operating Income (EBIT) | ? |
| - | interest | 76 |
| = | Earnings Before Taxes (EBT) | ? |
| - | taxes | 81 |
| = | Net Income | ? |
What is the operating income of this firm?
NOTE: the - and = in red have been added to serve as a hint on how to compute each item of interest.
A firm reported the following income statement (all figures are in thousands of dollars):
| Net Sales | 1,550 | |
| - | operating costs | 200 |
| - | depreciation & amortization | 220 |
| = | Operating Income (EBIT) | ? |
| - | interest | 77 |
| = | Earnings Before Taxes (EBT) | ? |
| - | taxes | 70 |
| = | Net Income | ? |
What is the net income of this firm?
NOTE: the - and = in red have been added to serve as a hint on how to compute each item of interest.
A firm reported the following income statement (all figures are in thousands of dollars):
| Net Sales | 1,595 | |
| - | operating costs | 200 |
| - | depreciation & amortization | 200 |
| = | Operating Income (EBIT) | ? |
| - | interest | 121 |
| = | Earnings Before Taxes (EBT) | ? |
| - | taxes | ? |
| = | Net Income | ? |
What is the amount of taxes the firm is charged, given that the tax rate is 30%?
answer using one decimal figure.
NOTE: the - and = in red have been added to serve as a hint on how to compute each item of interest.
Solutions
Expert Solution
Q-1) Operating Income(EBIT) = Sales - Operating Costs - depreciation & amortization
EBIT = $1100,000 - $200,000 - $230,000
EBIT = $670,000
Q-2)
Operating Income(EBIT) = Sales - Operating Costs - depreciation & amortization
EBIT = $1550,000 - $200,000 - $220,000
EBIT = $1130,000
Net Income = EBIT - Interest Expenses - Taxes
Net Income = $1130,000 - $77,000 - $70,000
Net Income = $983,000
Q-3)
Operating Income(EBIT) = Sales - Operating Costs - depreciation & amortization
EBIT = $1595,000 - $200,000 - $200,000
EBIT = $1195,000
Earnings Before Taxes (EBT)= EBIT - Interest Expenses
Earnings Before Taxes (EBT)= $1195,000 - $121,000
Earnings Before Taxes (EBT) = $1074,000
Amount of taxes = Earnings Before Taxes (EBT)*Tax Rate
Amount of taxes = $1074,000*30%
Amount of taxes = $322,200
jeff jeffy answered 3 years agoRelated Solutions
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the...
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Calvin Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
Current Year
Previous Year
Revenues:
Admissions
$92,316
$104,544
Event-related revenue
135,648
131,648
NASCAR broadcasting revenue
179,922
170,368
Other operating revenue
63,114
77,440
Total revenue
$471,000
$484,000
Expenses and other:
Direct expense of...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the...
Vertical Analysis of Income Statement The following comparative
income statement (in thousands of dollars) for the two recent
fiscal years was adapted from the annual report of Calvin
Motorsports, Inc., owner and operator of several major motor
speedways, such as the Atlanta, Texas, and Las Vegas Motor
Speedways. Current Year Previous Year Revenues: Admissions $94,400
$107,580 Event-related revenue 138,768 147,189 NASCAR broadcasting
revenue 169,448 160,881 Other operating revenue 69,384 73,350 Total
revenue $472,000 $489,000 Expenses and other: Direct expense of...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the...
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Motor Speedways Inc., owner and operator of
several major motor speedways.
Current Year
Previous Year
Revenues:
Admissions
$89,870
$102,690
Event-related revenue
145,684
147,189
NASCAR broadcasting revenue
170,753
161,859
Other operating revenue
66,693
77,262
Total revenues
$473,000
$489,000
Expenses and other:
Direct expense of events
$97,911
$97,800
NASCAR purse and sanction fees
116,358
117,849...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the...
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Calvin Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
Current Year
Previous Year
Revenues:
Admissions
$106,872
$119,739
Event-related revenue
147,376
142,284
NASCAR broadcasting revenue
187,392
177,354
Other operating revenue
46,360
61,623
Total revenue
$488,000
$501,000
Expenses and other:
Direct expense of...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two...
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of
dollars) for two recent fiscal years was adapted from the annual
report of Speedway Motorsports, Inc. (TRK), owner
and operator of several major motor speedways, such as the Atlanta,
Texas, and Las Vegas Motor Speedways.
Current Year
Previous Year
Revenues:
Admissions
$90,639
$100,694
Event-related revenue
136,900
146,980
NASCAR broadcasting revenue
224,227
217,469
Other operating revenue
60,390
31,320
Total revenues
$512,156
$496,463
Expenses and other:
Direct expense of...
PART I: Suppose a firm is considering the following project (all figures in $ thousands): To...
PART I:
Suppose a firm is considering the following project (all figures
in $ thousands):
To undertake the project the firm will need to make a one-time
investment of $137,500 in year 0. This specialized equipment can be
depreciated using the straight-line method over the seven years,
with a salvage value of $5,600 in year 7.
Your sales and marketing team tell you that they estimate sales
of 7,500 units in year 1, rising by roughly 35% per year through...
#4 A firm has the following (incomplete) income statement. All numbers are in dollars. The tax...
#4 A firm has the following (incomplete) income
statement. All numbers are in dollars. The tax rate is
20%.
Cost of Goods Sold
10,000
Taxes
2,000
Administration
2,500
Interest
750
Depreciation
1,000
Determine:
Revenues
Net Income
EBIT
Plowback in dollars if the plowback ratio (the amount
of money put back into the company) was 30%
Payout in dollars if the payout ratio (the amount of
money paid to investors as dividends/disbursements) was
70%
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Motor Speedways Inc., owner and operator of
several major motor speedways.
1
Current Year
Previous Year
2
Revenues:
3
Admissions
$93,991.00
$106,074.00
4
Event-related revenue
142,204.00
134,460.00
5
NASCAR broadcasting revenue
189,930.00
179,280.00
6
Other operating revenue
60,875.00
78,186.00
7
Total revenue
$487,000.00
$498,000.00
8
Expenses and other:
9
Direct expense of events
$96,913.00
$100,098.00
10
NASCAR purse...
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Speedway Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
1
Current Year
Previous Year
2
Revenues:
3
Admissions
$116,034.00
$130,239.00
4
Event-related revenue
151,562.00
163,621.00
5
NASCAR broadcasting revenue
192,662.00
185,394.00
6
Other operating revenue
29,902.00
26,951.00
7
Total revenue
$490,160.00
$506,205.00
8
Expenses and other:...
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
The following comparative income statement (in thousands of
dollars) for the two recent fiscal years was adapted from the
annual report of Calvin Motorsports, Inc., owner and operator of
several major motor speedways, such as the Atlanta, Texas, and Las
Vegas Motor Speedways.
Current Year
Previous Year
Revenues:
Admissions
$97,412
$110,592
Event-related revenue
138,663
145,920
NASCAR broadcasting revenue
179,417
169,472
Other operating revenue
81,508
86,016
Total revenue
$497,000
$512,000
Expenses and other:
Direct expense of events
$103,873
$104,960
NASCAR purse...
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