Question

During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards

Answer 1

Rindal Vinyards Inc.'s net income for 2015 was calculated by subtracting Depreciation and Amortization, Interest Expense, and Tax Expense from EBITDA, resulting in a total net income of $650.

Step-by-step explanation:

To calculate Rindal Vinyards Inc.’s net income for 2015, we’ll use the following information provided: EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. The calculation is as follows:

1. Subtract Depreciation and Amortization Expense from EBITDA to get EBIT (Earnings Before Interest and Taxes).
2. Subtract Interest Expense from EBIT to get EBT (Earnings Before Taxes).
3. Subtract Tax Expense from EBT to get the Net Income.

Step 1: EBITDA - Depreciation and Amortization = EBIT
$1000 - $200 = $800

Step 2: EBIT - Interest Expense = EBT
$800 - $100 = $700

Step 3: EBT - Tax Expense = Net Income
$700 - $50 = $650

Therefore, Rindal Vinyards Inc.’s net income for the year 2015 was $650.

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