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Accounting and Finance for Decision Making - Desklib

   

Added on  2023-06-18

9 Pages1330 Words207 Views
Finance
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 | 
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ACCOUNTING AND
FINANCE FOR DECISION
MAKING
Table of Contents
Accounting and Finance for Decision Making - Desklib_1

Part A...............................................................................................................................................3
Part B...............................................................................................................................................3
Question 6...................................................................................................................................3
Question 7...................................................................................................................................4
Question 8...................................................................................................................................4
Part C...............................................................................................................................................4
Question 9...................................................................................................................................4
Question 10.................................................................................................................................5
Question 11.................................................................................................................................7
Part A
c
Accounting and Finance for Decision Making - Desklib_2

d
e
a
b
Part B
Question 6
6) Calculation of Earning before interest and tax
Gross Profit – Depreciation & amortisation – research and development – SG&A expense
excluding legal claim provision
70890 – 66773 – 2300 – (59890 – 31900) = -30010
Calculation of EBITDA
EBIT + depreciation and amortisation
-30010 + 66773 = 36763
Question 7
7) Calculation of Effective Tax Rate
Income Tax Expenses/ Earning before taxes
2750.7/ 5116.4 * 100 = 54%
Note: Because of the lack of information regarding whether the non-recurring COGS is included
in the P&L or not, it is assumed that this is already included in the COGS mentioned in Income
statement.
Calculation of Normalized ETR
Normalised ETR
ETR – MTR
= 54 – 32
= 22%
Question 8
8) Calculation of Cleaned Net Income for Notsoeasy Ltd.
Particular Amount
Revenue 109054.6
Accounting and Finance for Decision Making - Desklib_3

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