Company’s Balance Sheet

Ahlam Company’s net income for the year 2000, is $3,700,214. The company had an EBITDA of $ 10,125,300, and its depreciation and amortization expense was equal to $2,543,790. The company’s average tax rate is 35 percent.

a.What is the amount of interest expenses for the firm? (Show the details of your calculations).

b.Prepare a common sized Income Statement if net sales equal $12,000,000.

Sample Solution