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.
- What is the amount of interest expenses for the firm? (Show the details of your calculations).
- 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)
