Answered

For its most recent fiscal year, Cullumber Hobby Shop recorded EBITDA of $513,563.00, EBIT of $362,450.20, zero interest expense, and cash flow to investors from operating activity of $348,341.30. Assuming there are no noncash revenues recorded on the income statement, what is the firm's net income after taxes? (Round answer to 2 decimal places, e.g. 15.25.)

Answer :

Ritmeks

Answer:

$499,454.1

Explanation:

Cullumber hubby shop recorded a EBITDA of $513,563.00

The EBIT is $362,450.20

The cash flow to investors from operating activities is $348,341.30

The first step is to calculate the depreciation

= EBITDA-EBIT

= $513,563.00-$362,450.20

= $151,112.8

Therefore the firm's net income after taxes can be calculated as follows

= depreciation + cash flow to investors

= $151,112.8 + $348,341.30

= $499,454.1

Hence the firm's net income after taxes is $499,454.1

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