Pharoah Corporation has announced that its net income for the year ended June 30, 2017, was...

Pharoah Corporation has announced that its net income for the year ended June 30, 2017, was $1,353,412. The company had EBITDA of $4,994,000, and its depreciation and amortization expense was equal to $1,122,000. The company's average tax rate is 34 percent. What was its interest expense? (Round answer to 2 decimal places, e.g. 15.25.)

Solutions

Expert Solution

EBITDA	4,994,000
Less:depreciation and amortization expense	1,122,000
EBIT	3872000
Less:interest(3872000-2050624.24)	$1821375.76(Approx)
EBT(100%)(1,353,412/0.66)	2050624.24
Less:tax@34%(2050624.24*34%)	697212.24
Net income(66%)	1,353,412

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was...

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was $1,353,412. The company had EBITDA of $4,943,000, and its depreciation and amortization expense was equal to $1,114,000. The company's tax rate is 34 percent. What was its interest expense? (Round answer to 2 decimal places, e.g. 15.25.) Interest expense

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was...

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was $1,353,412. The company had EBITDA of $4,967,000, and its depreciation and amortization expense was equal to $1,124,000. The company's tax rate is 34 percent. What was its interest expense?

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was...

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was $1,353,412. The company had EBITDA of $4,957,000, and its depreciation and amortization expense was equal to $1,156,000. The company's tax rate is 34 percent. What was its interest expense? (Round answer to 2 decimal places, e.g. 15.25.) Interest expense.

Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported...

Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expense $450 Research and development expense $110 Depreciation expense 85 Income tax expense 198 Sales revenue 8,225 Loss on disposal of plat assets 45 Interest expense 210 Cost of goods sold 5,440 Advertising expense 490 Rent expense 115 Sales returns and allowances 225 Utilities expense 65 a) Prepare a multiple-step income statement Calculate...

Accounting for income tax The accounting profit before tax for the year ended 30 June 2017...

Accounting for income tax The accounting profit before tax for the year ended 30 June 2017 for Aldee Ltd amounted to $235,000. It included the following income and expense items: $ Royalties (exempt income) 15,000 CR Interest revenue 16,000 CR Annual leave expense 9,000 DR Doubtful debts expense 3,800 DR Depreciation - plant (15% per year, straight-line) 47,250 DR Depreciation - motor vehicles (20% per year, straight-line) 20,000 DR Insurance expense 14,000 DR Rent expense 42,000 DR Warranty expense...

Smart Company is preparing its financial statements for the year ended June 30, 2017. The financial...

Smart Company is preparing its financial statements for the year ended June 30, 2017. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017. Download the excel spreadsheet found in the link below. Required: Prepare a spreadsheet to support a statement of cash flows for the year ended June 30, 2017. In the tab named ‘Journal Entries’, show in journal...

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported...

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expenses $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 430 Sales revenue 5,830 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 2,800 Advertising expense 499 Rent expense 105 Sales returns and allowances 230 Utilities expense 60 Assume a tax rate of 34%....

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported...

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expenses $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 702 Sales revenue 7,430 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 3,600 Advertising expense 499 Rent expense 105 Sales returns and allowances 230 Utilities expense 60 Assume a tax rate of 34%. ...

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported...

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expenses $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 770 Sales revenue 7,830 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 3,800 Advertising expense 499 Rent expense 105 Sales returns and allowances 230 Utilities expense 60 Assume a tax rate of 34%....

Panther Marine Corporation For the Years Ended June 30, 2016 and 2017 Instructions: Below are the...

Panther Marine Corporation For the Years Ended June 30, 2016 and 2017 Instructions: Below are the adjusted trial balances for the years ended June 30, 2016 and 2017. The outlined cells in the changes columns MUST be completed for the statement of cash flows. Use formulas to find the debit OR credit changes in identfied cells. USE the June 30, 2017 adjusted trial balance columns to create the financial statements. DO NOT COMPLETE CELLS THAT ARE GRAYED OUT. June 30,...

Subjects