Ask Question
BusinessBusiness
7 June, 01:16

Tater and Pepper Corp. reported free cash flows for 2018 of $51.1 million and investment in operating capital of $34.1 million. Tater and Pepper incurred $14.8 million in depreciation expense and paid $25.3 million in taxes on EBIT in 2018. Calculate Tater and Pepper's 2018 EBIT.

+1
Answers (2)
  1. 7 June, 01:31
    0
    Earnings before interest and tax is $95.7 million

    Explanation:

    Earnings before interest and tax is the short form for earnings before interest and tax, which is net income of the company before considering paying interest obligation to bondholders and taxes payable to the relevant tax authorities whether state, federal or local authorities

    Earning's Before Interest and Taxes

    Operating cash flow = FCF + investment in Capital expenditure

    $51.1 million+$34.1million = 85.2 million

    OCF = EBIT - Taxes + Depreciation

    85.2 million = EBIT - 25.3 million + 14.8 million = ?

    EBIT = 95.7 million
  2. 7 June, 01:45
    0
    Tater and Pepper Corp

    computation of EBIT

    $million

    Free cash flow 51.1

    Add: Tax 25.3

    Investment in operating Capital 34.1 59.4

    110.5

    less: Depreciation expenses 14.8

    EBIT 95.7
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Tater and Pepper Corp. reported free cash flows for 2018 of $51.1 million and investment in operating capital of $34.1 million. Tater and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Kevin has considered selling franchises of his very successful hardware store. however, he is concerned that the franchises will destroy the reputation of the company and end up hurting his business. what advice would you give kevin?
Answers (1)
A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for four years. At that time (EOY 4) we believe we can sell the property for $197,000.
Answers (1)
Tucker Corporation is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable, but this may be changed.
Answers (1)
Which of the following statements about personal selling is correct? A. Salespeople are often the only direct contact with a customer. B. The role of personal selling is very consistent from company to company. C.
Answers (1)
Consumer surplus: Select one: a. is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price. b.
Answers (1)
New Questions in Business
Mention two factors that influence the supply of the product
Answers (1)
What is a mortgage? aa type of rent used to pay for housing ba type of loan used to buy property ca measure of the value of a home da measure of your credit rating?
Answers (1)
Economists generally support a. trade restrictions. b. government management of trade. c. free international trade. d. export subsidies.
Answers (1)
jermey owns his own business and has excellent management skills. he is very detail oriented, organized, knows how to follow a schedule and delegates tasks well
Answers (1)
All business transactions can be stated in terms of a. changes in cash. b. changes in owner's equity. c. changes in the elements of the accounting equation. d. None of these choices are correct.
Answers (1)
Home » Business » Tater and Pepper Corp. reported free cash flows for 2018 of $51.1 million and investment in operating capital of $34.1 million. Tater and Pepper incurred $14.8 million in depreciation expense and paid $25.3 million in taxes on EBIT in 2018.
Sign Up Forgot Password?