Please help answer question 2

Base each of the following questions on the exhibit below. Each question is independent-in other words, don't use any adjustments you made in question 1 to answe question 2. Show the adjustment column similar to what we did in class r 1. Assume the company below issued $1,000 of additional debt Recalculate Debt/EBITDA and interest coverage. Adjustments Pro Forma Revenues 5,000 COGS 4,000 Gross Profit 1,000 SG&A 250 Depreciation 75 Operating Income 675 750 EBITDA Debt 1,500 Debt/EBITDA 2x EBITDA/Interest 8.3x 2. Assume the company purchased a competitor which increased revenue by $1,500 with similar gross margins. Assume the company borrowed $2,000 to finance this acquisition. Assume $50 incremental SG&A expenses. Recalculate Debt/EBITDA and interest coverage. Adjustments Pro Forma Revenues 5,000 COGS 4,000 Gross Profit 1,000 SG&A 250 Depreciation 75 675 Operating Income EBITDA 750 Debt 1,500 Base each of the following questions on the exhibit below. Each question is independent-in other words, don't use any adjustments you made in question 1 to answe question 2. Show the adjustment column similar to what we did in class r 1. Assume the company below issued $1,000 of additional debt Recalculate Debt/EBITDA and interest coverage. Adjustments Pro Forma Revenues 5,000 COGS 4,000 Gross Profit 1,000 SG&A 250 Depreciation 75 Operating Income 675 750 EBITDA Debt 1,500 Debt/EBITDA 2x EBITDA/Interest 8.3x 2. Assume the company purchased a competitor which increased revenue by $1,500 with similar gross margins. Assume the company borrowed $2,000 to finance this acquisition. Assume $50 incremental SG&A expenses. Recalculate Debt/EBITDA and interest coverage. Adjustments Pro Forma Revenues 5,000 COGS 4,000 Gross Profit 1,000 SG&A 250 Depreciation 75 675 Operating Income EBITDA 750 Debt 1,500