Q1 (1.5 marks)
Ahlam Company’s net income for the year 2000, is $3,700,214. The company had an EBITDA of $ 10,125,300, and its depreciation and amortization expense was equal to $2,543,790. The company’s average tax rate is 35 percent.
What is the amount of interest expenses for the firm? (Show the details of your calculations).
Prepare a common sized Income Statement if net sales equal $12,000,000
Q2. (1 Mark)
The following are accounts balance (in thousands) for Malak Company. Calculate Net Income after-tax (show intermediate steps) t=35% for the year ended December 31, 2020.
Net property and equipment
Cash & cash equivalents
Q3. Calculate the following ratios from the Balance Sheet and the Income Statement given below: (1.5 Mark)
Fixed asset turnover
Total asset turnover
Operating profit margin
Net fixed assets
Total liabilities and owners equity
Net operating income
Q4. Using the values below, answer the questions that follow: (1mark)
Amount of annuity: $500
Interest rate: 9%
A) Calculate the future value of the annuity, assuming that it is
1/ An ordinary annuity.
2/ An annuity due.
B) Compare your findings in parts a(1) and a(2).
All else being identical, which type of annuity—ordinary or annuity due—is preferable as an investment? Explain why.
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