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.
((in the attachment))
Q3. Why secondary markets are so important to raise capital? (1 mark)
Assignment Questions
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.
1. What is the amount of interest expenses for the firm? (Show the details of your calculations).
1. 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
$3,500
Q3. Why secondary markets are so important to raise capital? (1 mark)
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