Jim’s Farm Store reported $200,000 in sales, $120,000 in ope…
Jim’s Farm Store reported $200,000 in sales, $120,000 in operating costs other than depreciation, and $30,000 of depreciation over the past year. The store holds a $40,000 loan at a 6% interest rate, and its federal-plus-state income tax rate is 20%. How much is EBIT? Indicate to the nearest whole number. Do not include a $ or commas. Note: There are three questions in this exam using the same information about Jim’s Farm Store. Keep your calculations handy.
Read DetailsJim’s Farm Store reported $200,000 in sales, $120,000 in ope…
Jim’s Farm Store reported $200,000 in sales, $120,000 in operating costs other than depreciation, and $30,000 of depreciation over the past year. The store holds a $40,000 loan at a 6% interest rate, and its federal-plus-state income tax rate is 20%. How much is interest? Indicate to the nearest whole number. Do not include a $ or commas. Note: There are three questions in this exam using the same information about Jim’s Farm Store. Keep your calculations handy.
Read DetailsJim’s Welding Shop started recorded $400,000 in revenues, $2…
Jim’s Welding Shop started recorded $400,000 in revenues, $200,000 in operating expenses, $20,000 in depreciation, and $10,000 in interest.. He withdrew $30,000 from his cash account to pay his daughter’s tuition. He purchased a bean roller for $40,000 and took out a loan on it for $30,0000 (that is, $30,000 in cash came from the bank), and the family withdrew $50,000 for family living expenses. He lives in the magical no-tax country of CherylLand. How much did he add or substract from cash during the year? Hint: You calculate net income, subtract net cash expenses not included in the calculation of net income, and add back depreciation as it is a non-cash expense. Not included in the calculation of net income: tuition, purchase and financing of bean roller, and family living.
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