help!!! Carmichael Hobby Shop has an EBITDA of $561,832.51, an EBIT of $362,450.
ID: 2387312 • Letter: H
Question
help!!!Carmichael Hobby Shop has an EBITDA of $561,832.51, an EBIT of $362,450.20, and a cash flow of $314,430.92. If the company's tax rate was 34 percent, what is its net income after taxes?
Amount
EBITDA $ ------------------------------------------------------
Depreciation -------------------------------------------------
EBIT $ ----------------------------------------------------------
Interest --------------------------------------------------------
EBT $ -----------------------------------------------------------
Taxes ------------------------------------------------------------
Net income $----------------------------------------------------
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Explanation / Answer
EBITDA 561,832.51 Less: depreciation 199,382.31 EBITDA 362,450.20 Less: Interest 188,134.12 EBT 174,316.08 Taxes 59,267.47 Net income 115,048.61 Working: EBITDA 561,832.51 Less: EBIT 362,450.20 Depreciation 199,382.31 Cash flow 314,430.92 Depreciation 199,382.31 Net profit after tax (a) 115,048.61 Tax = a/68*34 59,267.47 Profit before tax (a) 174,316.08 EBIT (b) 362,450.20 Therefore, Interest (b-a) 188,134.12
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