1 Company ABC has sales of $1,850,000, cost of goods sold of $1,000,000, EBIT of $350,000, interest expense of $65,000, and a tax rate of 27 If the company paid $51,000 in dividends what is the addition to retained earnings 2 Nitro Enterprise had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411 During the year, assets with a combined book value of $6,943 were sold Depreciation for the year was $42,822 What is the amount of net capital spending 3 Use the Income Statement and Balance Sheet below to calculate the companies free cash flow Income Statement 2017 Net Sales 675 Cost of goods sold 210 Depreciation 50 EBIT 415 Interest Paid 15 EBT 400 Taxes (30 ) 120 Net Income 280 Dividends 105 Addition to Retained Earnings 175 Assets 2016 2017 Liabilities and Shareholders equity 2016 2017 Current Assets Current Liabilities Cash 100 125 Accounts Payable 200 250 Accounts Receivable 250 350 Notes Payable 150 225 Inventory 400 375 Total Current Assets 750 850 Total Current Liabilities 350 475 Long term debt 300 250 Fixed Assets Stockholders equity PPE 1500 1700 Common stock 300 300 Accumulated Depreciation 400 450 Retained earnings 900 1075 Net PPE 1100 1250 Total Shareholders Equity 1200 1375 Total Assets 1850 2100 Total Liabilities Equity 1850 2100 4 A firm has net working capital of $700 Long term debt is $5,000, total assets are $7,800, and fixed assets are $3,850 What is the amount of the total liabilities

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1. Company ABC has sales of $1,850,000, cost of goods sold of $1,000,000, EBIT of $350,000, interest expense of $65,000, and a tax rate of

1. Company ABC has sales of $1,850,000, cost of goods sold of $1,000,000, EBIT of $350,000, interest expense of $65,000, and a tax rate of 27%. If the company paid $51,000 in dividends what is the addition to retained earnings.

2. Nitro Enterprise had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets with a combined book value of $6,943 were sold. Depreciation for the year was $42,822. What is the amount of net capital spending?

3. Use the Income Statement and Balance Sheet below to calculate the companies free cash flow.

Income Statement	2017
Net Sales	675
Cost of goods sold	210
Depreciation	50
EBIT	415
Interest Paid	15
EBT	400
Taxes (30%)	120
Net Income	280
Dividends	105
Addition to Retained Earnings	175

Assets	2016	2017	Liabilities and Shareholders equity	2016	2017
Current Assets			Current Liabilities
Cash	100	125	Accounts Payable	200	250
Accounts Receivable	250	350	Notes Payable	150	225
Inventory	400	375
Total Current Assets	750	850	Total Current Liabilities	350	475
			Long term debt	300	250
Fixed Assets			Stockholders equity
PPE	1500	1700	Common stock	300	300
Accumulated Depreciation	400	450	Retained earnings	900	1075
Net PPE	1100	1250	Total Shareholders Equity	1200	1375
Total Assets	1850	2100	Total Liabilities & Equity	1850	2100

4. A firm has net working capital of $700. Long-term debt is $5,000, total assets are $7,800, and fixed assets are $3,850. What is the amount of the total liabilities?