Finance assignment
Question Description
Q1 (2 marks)
Altamimi 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.
a.What is the amount of interest expenses for the firm? (Show the details of your calculations).
b.Prepare a common sized Income Statement if sales equal $12,000,000.
Q2. (2 Marks)
The following are accounts balance (in thousands) for Malak Company. Prepare a balance sheet, and Income statement using intermediate steps t=35% for the year ended December 31, 2018.
Net property and equipment |
$ 2,000 |
Accounts receivable |
$3,000 |
Notes payable |
$37,000 |
Revenues |
$ 983,000 |
Supply expenses |
$ 255,000 |
Depreciation expenses |
$ 35,000 |
Labor expense |
$300,000 |
Interest Expenses |
$11,000 |
Stockholders’ Equity |
$61,500 |
Cash & cash equivalents |
$97,000 |
Long-term debt |
$3,500 |
Q3. Why secondary markets are so important to raise capital? (1 mark)
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