Luther Corporation Consolidated Income Statement Year ended December 31 (in $mil
ID: 2816791 • Letter: L
Question
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)
2006
2005
Total sales
610.1
558558
Cost of sales
(500.2)
(377.3377.3)
Gross profit
109.9
180.7180.7
Selling, general, and
administrative expenses
(40.5)
(39.439.4)
Research and development
(24.6)
(23.723.7)
Depreciation and amortization
(3.6)
(3.13.1)
Operating income
41.2
114.5114.5
Other income
minusminus
minusminus
Earnings before interest and taxes (EBIT)
41.2
114.5114.5
Interest income (expense)
(25.1)
(14.914.9)
Pretax income
16.1
99.699.6
Taxes
(5.5)
(34.8634.86)
Net income
10.6
64.7464.74
Price per share
$16
$15
Sharing outstanding (millions)
10.2
8.0
Stock options outstanding (millions)
0.3
0.2
Stockholders' Equity
126.6
63.6
Total Liabilities and Stockholders' Equity
533.1
386.7
Refer to the income statement above. Luther's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending December 31, 2005 is closest to:
r income
minusminus
minusminus
Earnings before interest and taxes (EBIT)
41.2
114.5114.5
Interest income (expense)
(25.1)
(14.914.9)
Pretax income
16.1
99.699.6
Taxes
(5.5)
(34.8634.86)
Net income
10.6
64.7464.74
Price per share
$16
$15
Sharing outstanding (millions)
10.2
8.0
Stock options outstanding (millions)
0.3
0.2
Stockholders' Equity
126.6
63.6
Total Liabilities and Stockholders' Equity
533.1
386.7
Refer to the income statement above. Luther's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending December 31, 2005 is closest to:
A.
$ 235.20million
B.
$ 94.10 million
C.
$ 141.10 million
D.
$ 117.60 million
2006
2005
Total sales
610.1
558558
Cost of sales
(500.2)
(377.3377.3)
Gross profit
109.9
180.7180.7
Selling, general, and
administrative expenses
(40.5)
(39.439.4)
Research and development
(24.6)
(23.723.7)
Depreciation and amortization
(3.6)
(3.13.1)
Operating income
41.2
114.5114.5
Other income
minusminus
minusminus
Earnings before interest and taxes (EBIT)
41.2
114.5114.5
Interest income (expense)
(25.1)
(14.914.9)
Pretax income
16.1
99.699.6
Taxes
(5.5)
(34.8634.86)
Net income
10.6
64.7464.74
Price per share
$16
$15
Sharing outstanding (millions)
10.2
8.0
Stock options outstanding (millions)
0.3
0.2
Stockholders' Equity
126.6
63.6
Total Liabilities and Stockholders' Equity
533.1
386.7
Explanation / Answer
Solution: Luther Corporation Net Income $64.74 Add: Taxes $34.86 Interest expense $14.91 Depreciation and amortization $3.13 EBITDA $117.64 Answer is D $117.60 Million
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