1. Little books inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? [Hint; write out the headings for an income statement, and fill in the known values then divide $3 million of net income by (1-T) = 0.6 to find the pretax income. The difference between EBIt and taxable income must be interest expense, use this same procedure to complete similar problems. [
2. Pearson brothers recently reported EBITDA of $7.5 million and net income of $1.8 million it had $ 2.0 million on interest expense and its corporate tax rate was 40%. what was its charge for depreciation and amortization?
3. W.C. Cycling had $55,000 in cash at year end 2014 and $25,000 in cash at year end 2015 the firm invested in property, plants and equipments, totaling 250,000 cashflow. Cashflow from financing activities totaled +$170,000
a. What was the cashflow from operating activities
b. If accruals increased by $25,000, receivables and inventories increased by $100,000 and depreciation and amortization totaled $10,000, what was the firms net income.
4- included in the attachement