EA Two-Part Analysis 2

Question 1

A company's net income is $1.2M. The tax rate is 25% and interest expense is $200K. What is operating income (EBIT) AND earnings before tax (EBT)?

Accepted Answer

EBIT=$1.8M, EBT=$1.6M

Answer

EBIT=$1.6M, EBT=$1.4M

Answer

EBIT=$2.0M, EBT=$1.8M

Answer

EBIT=$1.4M, EBT=$1.2M

Question 2

Two investments: Investment A returns 8% annually on $50K. Investment B returns 6% on $80K. What is the annual return for A AND the combined annual return for both?

Accepted Answer

A=$4K, Combined=$8.8K

Answer

A=$4K, Combined=$9.4K

Answer

A=$3K, Combined=$7.8K

Answer

A=$4K, Combined=$10K

Question 3

A worker completes 2/3 of a task. A second worker completes 1/4 of what remains. What fraction did the second worker complete AND what fraction of the original task remains?

Accepted Answer

Second=1/12, Remaining=1/4

Answer

Second=1/6, Remaining=1/4

Answer

Second=1/12, Remaining=1/3

Answer

Second=1/8, Remaining=3/8

Question 4

A car depreciates 20% in Year 1 and 15% in Year 2. It was purchased for $30,000. What is the value after Year 1 AND after Year 2?

Accepted Answer

After Y1=$24K, After Y2=$20.4K

Answer

After Y1=$24K, After Y2=$21K

Answer

After Y1=$25K, After Y2=$21.25K

Answer

After Y1=$22K, After Y2=$18.7K

Question 5

A store has 200 items. 30% are on sale at 50% off the original $40 price. What is the sale price per item AND total revenue if all items sell?

Accepted Answer

Sale price=$20, Total=$9,600

Answer

Sale price=$20, Total=$9,200

Answer

Sale price=$20, Total=$10,000

Answer

Sale price=$25, Total=$9,500

Question 6

A factory produces 500 units/day. In a 20-day month, it fills orders of 8,000 units and stores the rest. How many units are produced AND how many are stored?

Accepted Answer

Produced=10,000, Stored=2,000

Answer

Produced=10,000, Stored=1,500

Answer

Produced=9,000, Stored=1,000

Answer

Produced=10,000, Stored=2,500