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EBITDA is 7.5 million and net income is 1.8 million interest expense 2 million and corporate tax 40 what is the charge for depreciation and amortization?
Wiki User
∙ 15y ago
D&A = 2.5 million
Wiki User
∙ 15y ago
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Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is depreciation expenses a non-cash expense?
is depreciation expense a non-cash expense
Accumulated depreciation and depreciation expense?
Using accumulated depreciation and depreciation expense is a way that businesses can realize the true value of assets. A piece of equipment, for example, is devalued every year by the process of amortizing the asset. This in turn is recorded as depreciation and depreciation expense.
How does depreciation affect cashflow?
Indirectly. Technically it doesn't, depreciation is a non-cash expense. Depreciation expense does, however show up as a line item on the cash flows statement as an adjustment to operating income to derive net cash from operations... you add it back to income.
Where does interest expense in the income statement?
Interest expense is shown at debit side of income statement because it is an expense for business.
Does amortization have a cash expense?
No amortization is done for intangible assets like depreciation for tangible assets and it also does not involve cash expense.
How does amortization of the principal balance affect the amount of interest expense recorded each succeeding year?
reduces the amount of interest expense each succeeding year
Lessee books short workings recoverable in future years?
Books such as "Depreciation and Amortization" or "Capital Expenditure Accounting" would cover the topic of how to account for and recover the cost of assets over time, including through methods like depreciation or amortization. These books provide guidance on recording asset values, calculating depreciation or amortization expenses, and understanding how these processes impact financial statements and tax liabilities.
Is the straight-line amortization or effective interest rate method better?
This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)
What accounts are in net income?
Included in net income are the following: 1. All revenue-related accounts, e.g. Sales, service revenue, interest income, rental income, etc. 2. All expense-related accounts, e.g. Purchases, Depreciation, Rental expense, Maintenance expense, Amortization, Utilities expenses, etc. Net income = Revenues - Expenses
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is depreciation expenses a non-cash expense?
is depreciation expense a non-cash expense
5 million operating income net depreciation is 1 million interest expense of 1 million corporate tax rate is 40 percent what is the net income?
the remainders of money after a companies revenue is deducted
What is cash coverage ratio?
The cash coverage ratio is useful for determining the amount of cash available to pay for interest, and is expressed as a ratio of the cash available to the amount of interest to be paid.To calculate the cash coverage ratio, take the earnings before interest and taxes (EBIT) from the income statement, add back to it all non-cash expenses included in EBIT (such as depreciation and amortization), and divide by the interest expense. The formula is: Earnings Before Interest and Taxes + Non-Cash Expenses Interest Expense.
Is the Depreciation a loss or an Expense?
An expense.
Accumulated depreciation and depreciation expense?
Using accumulated depreciation and depreciation expense is a way that businesses can realize the true value of assets. A piece of equipment, for example, is devalued every year by the process of amortizing the asset. This in turn is recorded as depreciation and depreciation expense.
Does a depreciation expense increase or decrease cash flow?
Neither. Depreciation is a non-cash expense.
