Question

1. Ajax Company has a fiscal year end of 12/31. It is not October 2020. Prepare an income statement on a Last Twelve Months (LTM) basis. FOR THIS ASSIGNMENT ONLY, IT IS OK TO JUST FILL IN THE FORM WITHOUT SHOWING CALCULATIONS. A hint is in Ch 01 Lecture 3. LTM Calculation Yr. End 12/31/19 As of 9/30/19 As of 9/30/20 LTM Sales COGS Gross Profit 130.0 70.0 60.0 98.0 51.0 47.0 104.0 56.0 48.0 Selling & Marketing Other Overhead Total Overhead 6.0 34.0 40.0 4.5 28.8 33.3 4.8 29.1 33.9 EBIT 20.0 13.7 14.1 Interest Expense Earnings Before Tax Income Tax Net Income 4.0 16.0 4.8 11.2 3.4 10.3 3.5 6.8 4.1 10.0 3.5 6.5 Depreciation & Amortization 9.0 7.9 8.0

Answer 1

	A	B	C	A + C - B
	Yr End 12/31/19	As of 9/30/19	As of 9/30/20	LTM
Sales	130	98	104	136
COGS	70	51	56	75
Gross Profit	60	47	48	61
Selling and marketing	6	4.5	4.8	6.3
other overhead	34	28.8	29.1	34.3
Total Overhead	40	33.3	33.9	40.6
EBIT	20	13.7	14.1	20.4
Interest Expense	4	3.4	4.1	4.7
Earning before tax	16	10.3	10	15.7
Income Tax	4.8	3.5	3.5	4.8
Net Income	11.2	6.8	6.5	10.9
Depreciation & Amortization	9	7.9	8	9.1

А B с D E 1 B A+C-B 2 3 Sales 4 COGS 5 Gross Profit 6 Selling and marketing 7 other overhead 8 Total Overhead 9 EBIT 10 Interest Expense 11 Earning before tax 12 Income Tax 13 Net Income 14 Depreciation & Amortization 15 16 Yr End 12/31/19 130 70 =B3-B4 6 34 =B6+B7 =B5-B8 4 =B9-B10 4.8 =B11-B12 9 As of 9/30/19 98 51 =C3-C4 4.5 28.8 =C6+C7 =C5-C8 3.4 =C9-C10 3.5 =C11-C12 7.9 As of 9/30/20 104 56 =D3-D4 4.8 29.1 =D6+D7 =D5-DS 4.1 =D9-D10 3.5 =D11-D12 8 LTM =B3+D3-C3 =B4+D4-C4 =B5+D5-C5 =B6+D6-C6 =B7+D7-C7 =E6+E7 =B9+D9-C9 =B10+D10-C10 =B11+D11-C11 =B12+D12-C12 =E11-E12 =B14+D14-C14