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Calculating the variuos accounting measures

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1. Sawaya Company had depreciation and amortization expenses of $522,311, interest expenses of $114,077, and an EBITDA of $1,521,087 for the year ended June 30, 2010. What is the Times Interest Earned for this company?

2. Efficiency ratio: Jet, Inc., has net sales of $712,478 and accounts receivables of $167,435. What are the firm's accounts receivables turnover and days sales outstanding?

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Solution Summary

Times interest earned, accounts receivables turnover and days sales outstanding are important measures for evaluating the firm's financial position. Solutions describe the steps to calculate these measures with the help of information provided.

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1.
EBIT = EBITDA - Depreciation and amortization expense = 1521087-522311 = ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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