Question
(4.5 Marks).
CLO 3
A] Find the four missing numbers in the following income statement [EBITDA, EBIT, EBT, and
Taxes], show clearly your calculations.
[2]
Sales
Operating costs excluding depreciation and amortization
EBITDA
Depreciation and amortization
Earnings before interest and taxes (EBIT)
Interest
Earnings before taxes (EBT)
Taxes (40%)
Net income
Common dividends
2018
$\ 1,200.0
1,020.0
$\ 30.0
$\ 21.7
$\ 77.0
$\ 60.5
B] Using the completed income statement in part (A) above and the balance sheet below,
analyze the performance of the company using the following ratio and industry average. [No
formula sheet for financial ratios is provided at the beginning of the
exam]
Total debt to total capital
[2.5]
Industry Average
36%
2018