(Answered) Question vale sa a brazilian mineral products company

Accounting

Question: Vale S.A., a Brazilian mineral products company, provided the following note on a voluntary basis in its 2009 annual report:

11-Cash Generation (Unaudited): Consolidated operating cash generation measured by EBITDA (earnings before financial results, equity in subsidiaries, income taxes, depreciation, amortization and depletion, increased by dividends received was R$18,649 as of December 31, 2009, against R$35,022 as of December 31, 2008, representing a decrease of 46.8 percent. EBITDA is not a BR GAAP measure and does not represent the expected cash flow for the reporting periods, and therefore should not be considered as an alternative measure to net income (loss), as an indicator of operating performance or as an alternative to cash flow as a liquidity source. Vale definition of EBITDA may not be comparable with EBITDA as defined by other companies.

Required: Provide a response to each of the following questions:

a. What does EBITDA measure?

b. Why do you think Vale included Note 11, Cash Generation, in its 2009 annual report?

c. Why might a fi nancial analyst use EBITDA in evaluating a company's performance?

d. What limitations exist in using EBITDA to evaluate a company's performance?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92514289
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question select article or case in the last 3-5 years on a

Question: Select article or case in the last 3-5 years on a legal topic and write a paper between 1000 to 1500words analyzing the legal issues raised by the article or case , the implication of the case for business mana ...

Question - a companys wages payable account had a beginning

Question - A company's Wages Payable account had a beginning balance of $12,000. During the month, the company paid out $70,000 cash for wages. The account had an ending balance of $23,000. What was recorded as Wage Expe ...

Question - hunter co purchased a delivery truck the total

Question - Hunter Co. purchased a delivery truck. The total cash payment was $30,020, including: Negotiated purchase price $24,000 Installation of special shelving 1,100 Painting and lettering 900 Motor vehicle license 1 ...

Question -waterway inc had net sales in 2017 of 1492600 at

Question - Waterway, Inc. had net sales in 2017 of $1,492,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $232,200 debit, and Allowance for Doubtful Account ...

Question - kelly hayes operates a bed and breakfast hotel

Question - Kelly Hayes operates a bed and breakfast hotel in a beach resort area of Noosa. Depreciation on the hotel is $60,000 per year. Kelly employs a maintenance person at an annual salary of $30,000 per year and a c ...

Question - solar power inc had the following transactions

Question - Solar Power Inc. had the following transactions during 2105. Sales revenue $15,000 Equipment rental revenue 420 Cost of sales 6,200 Selling and administrative expenses 3,500 Interest expense 560 Gain on sale o ...

Question - on 1 january 2015 image plus ltd acquired

Question - On 1 January 2015 Image Plus Ltd acquired electronic equipment for $18 000, net of GST. It is estimated it will have no residual value. If depreciation is provided at 10% p.a. on the diminishing-balance basis, ...

Question define accounting and describe its role in

Question: Define accounting and describe its role in business.? Accounting, the language of business allows for the communication and distribution of information to owners, managers, and investors to evaluate a company's ...

Question - on january 1 2016 company x had an inventory

Question - On January 1, 2016, Company X had an inventory balance of $200,000. During the year, Company X had net purchases of $1,000,000 and net sales of $900,000. Historically, Company X's gross profit ratio has been 4 ...

Question - 1 paid 20000 cash to purchase equipment costing

Question - 1. Paid $20,000 cash to purchase equipment costing $80,000. The remaining amount was recognized as a one year note payable with interest rate of 9%. 2. A major dental machine in our office is broken beyond rep ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert