FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Calculate EBITDA
I calculated $6,750,000 but I also calculated 6,507,692 - which one is correct?
Operating costs (excl.
Depreciation and amortization: $1.5m
Interest: $0.7m
Net Income: $2.8m
Tax Rate: 35%
Expert Solution
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Step 1
Income before tax = Net income / (1 - tax rate)
= $2,800,000/(1-0.35)
= $4,307,692
Step by stepSolved in 2 steps
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