Use the table for the question(s)below.
Luther Corporation Consolidated Income Statement Year ended 30 June (in $ millions)

-Refer to the income statement above. Luther's earnings before interest, taxes, depreciation, and amortisation (EBITDA)for the year ending 30 June 2018 is closest to:
A)$41.2 million
B)$37.6 million
C)$44.8 million
D)$19.7 million

Question

Use the table for the question(s)below.
Luther Corporation Consolidated Income Statement Year ended 30 June (in $ millions)
 
-Refer to the income statement above. Luther's earnings before interest, taxes, depreciation, and amortisation (EBITDA)for the year ending 30 June 2018 is closest to:
A)$41.2 million 
B)$37.6 million 
C)$44.8 million 
D)$19.7 million

Quizplus · Accepted Answer

EBITDA is calculated by adding Depreciation and Amortisation expenses to the operating profit. Thus, EBITDA = Operating Profit + Depreciation + Amortisation = 40.2 + 1.6 + 3.0 = $44.8 million.

Use the Table for the Question(s)below