Question

Jake Entertainment Corporation has three segments with revenue, operating income, and depreciation and amortization information (in millions) as follows: Segment Revenue Operating Income Depreciation and Amortization Film $5,000 $1,500 $525 Theme Park 1,000 320 112 Video Game 500 175 53 Totals $6,500 $1,995 $690 The EBITDA for the Theme Park segment is

Answer 1

EBITDA = $2,685

Step-by-step explanation:

EBITDA is the acronym for Earnings before interest taxes depreciation and amortization .

EBITDA is a common financial metric which is used to measure the a company's profitability unlike other profitability it is very useful to gauge how much cashflow a company's has. It is the profit earned by a firm before deducting non-cash items and other obligations. It quantifies how much cash is available to settle interest on debt obligations and taxes.

It is computed ad follows:

EBITDA = operating income + depreciation an amortization

= $1,995 + $690= $2,685

EBITDA = $2,685