Refer to the following financial information of Scholz Company: NOPAT 8,250,000 FBITDA 17,725,000 Net Income 5,050,000 Capital Expenditures 6,820,000 After tax capital costs 6,280,000 Tax rate 40% 1.Calculate the Company's depreciation and amortization expense 2. Refer to Scholz Company, calculate its interest expense. Use 2 decimal places for your final answer. 3. Refer to Scholz Company, calculate its EVA. Use 2 decimal places for your final answer
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Refer to the following financial information of Scholz Company:
NOPAT 8,250,000
FBITDA 17,725,000
Net Income 5,050,000
Capital Expenditures 6,820,000
After tax capital costs 6,280,000
Tax rate 40%
1.Calculate the Company's depreciation and amortization expense
2. Refer to Scholz Company, calculate its interest expense. Use 2 decimal places for your final answer.
3. Refer to Scholz Company, calculate its EVA. Use 2 decimal places for your final answer
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