Question
please answer 5-9 1. During the year 2017, the ABC company had sales of $1,000, cost of goods sold of $400, depreciation of $100, and
please answer 5-9
1. During the year 2017, the ABC company had sales of $1,000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. Using a 34% corporate tax rate, and assuming all taxes are paid the year they are due, construct BCs income statement for 2017. 2. The ABC Company had 100 shares of outstanding common stock at the end of 2017. Total dividends paid for 2017 were $120. Compute earnings per share (EPS) and dividends per share for the year. 3. BC had the following account balances: 2016 2017 Notes Payable $1,200 $1,600 Accounts Payable $2,400 $2,000 Long-Term Debt $3,000 $2,800 Cash $800 $500 Marketable Securities $400 $300 Accounts Receivable $900 $800 Inventory $1,800 $2,000 Net Plant & Equipment $6,000 $8,000 Prepare Balance Sheets for 2016 & 2017. 4. Based on the information from Problem 1, calculate ABCs operating cash flow for 2017. 5. During 2017, ABC sold $300 in net fixed assets. They also issued $2,400 worth of new stock and used the proceeds to buy new fixed assets. What was the net capital spending for that year? 6. Based on the Balance Sheet above for ABC Company, what was the net working capital in each year? What were the additions to net working capital in 2017? 7. Using the above information, what was BCs total cash flow from assets in 2017? 8. What was BCs cash flow to long-term creditors in 2017? 9. Now assume that, in addition to issuing $2,400 in new common shares, ABC also repurchased $611 in common shares. What was the firms cash flow to shareholders in 2017?
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