Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

please help urgent!! this is difficult Covid Bashers Inc. has the following Balance Sheet and Income Statement for 2019: Cash $ 1,000 Accounts Payable $10,000

please help urgent!! this is difficult image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Covid Bashers Inc. has the following Balance Sheet and Income Statement for 2019: Cash $ 1,000 Accounts Payable $10,000 Marketable Securities 5,000 Note Payable 5,000 Accounts receivable 10,000 Shareholder Loan Receivable 2,000 Inventories 14.000 Total Current Assets $32,000 Total Liabilities $15,000 Land 40,000 Common Stocks 3,000 20,000 Retained Earnings 90.000 Building (cost - $30,000) Equipment (cost - $20,000) 16.000 Total $108.000 Total $108.000 Sales $200,000 COGS 100.000 Gross Profit 100,000 Operating expenses 72,500 Operating expenses Depreciation Interest Expense Total Expenses 72,500 1,000 500 74,000 Income before Taxes 26,000 Income Taxes (40%) 4.800 Net Income $10.400 Other information: The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40.000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50.000. Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2.000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20.000 and the CCA rate is 30%. Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15% - Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15%. Based on Company's growth prospects, economic and market conditions, capitalization rate is judged to be WACC less 3% Assume the business will continue as a going concern, what is its NORMALIZED EBITDA (no comma) FOR 2019? Answer. Referring to Covid Bashers Inc, what is the company's Normalized Discretionary Cash Flow for 2019 (no comma)? Hint: After taxes, and also what to do about SCI and PVTS. Other information: The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000 Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital Show al Referring to Covid Bashers Inc, what is the company's Normalized Discretionary Cash Flow for 2019 (no comma)? Hint: After taxes, and also what to do about SCI and PVTS. Other information: . The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000. Marketable Securities are surplus cash in excess of operational needs (FMV 55,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20,000 and the CCA rate is 30%. Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15% Based on Company's growth prospects, economic and market conditions, capitalization rate is judged to be WACC less 3% . TE OF WISD X C "When Considering The Risk Of X SPVs in Asset Securitization - W X + empt=19866&cmid=114804&page=35 Referring to Covid Bashers Inc., What are the value of its Capitalized Cash Flows in 2019 (no commas)? Answer: Lastly, referring to Covid Bashers Inc. for 2019, What is the value of Equity (no commas)? Hints: Remember to adjust Capitalized Cash Flows for various balance sheet items and PVTS on existing assets. Other information: . The business does not have a business cycle 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000. Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20,000 and the CCA rate is 30%. . . Lastly, referring to Covid Bashers Inc. for 2019, What is the value of Equity (no commas)? Hints: Remember to adjust Capitalized Cash Flows for various balance sheet items and PVTS on existing assets. Other information: . . The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000 Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20,000 and the CCA rate is 30%. Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15% Based on Company's growth prospects, economic and market conditions, capitalization rate is judged to be WACC less 3% . Answer: Covid Bashers Inc. has the following Balance Sheet and Income Statement for 2019: Cash $ 1,000 Accounts Payable $10,000 Marketable Securities 5,000 Note Payable 5,000 Accounts receivable 10,000 Shareholder Loan Receivable 2,000 Inventories 14.000 Total Current Assets $32,000 Total Liabilities $15,000 Land 40,000 Common Stocks 3,000 20,000 Retained Earnings 90.000 Building (cost - $30,000) Equipment (cost - $20,000) 16.000 Total $108.000 Total $108.000 Sales $200,000 COGS 100.000 Gross Profit 100,000 Operating expenses 72,500 Operating expenses Depreciation Interest Expense Total Expenses 72,500 1,000 500 74,000 Income before Taxes 26,000 Income Taxes (40%) 4.800 Net Income $10.400 Other information: The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40.000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50.000. Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2.000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20.000 and the CCA rate is 30%. Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15% - Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15%. Based on Company's growth prospects, economic and market conditions, capitalization rate is judged to be WACC less 3% Assume the business will continue as a going concern, what is its NORMALIZED EBITDA (no comma) FOR 2019? Answer. Referring to Covid Bashers Inc, what is the company's Normalized Discretionary Cash Flow for 2019 (no comma)? Hint: After taxes, and also what to do about SCI and PVTS. Other information: The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000 Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital Show al Referring to Covid Bashers Inc, what is the company's Normalized Discretionary Cash Flow for 2019 (no comma)? Hint: After taxes, and also what to do about SCI and PVTS. Other information: . The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000. Marketable Securities are surplus cash in excess of operational needs (FMV 55,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20,000 and the CCA rate is 30%. Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15% Based on Company's growth prospects, economic and market conditions, capitalization rate is judged to be WACC less 3% . TE OF WISD X C "When Considering The Risk Of X SPVs in Asset Securitization - W X + empt=19866&cmid=114804&page=35 Referring to Covid Bashers Inc., What are the value of its Capitalized Cash Flows in 2019 (no commas)? Answer: Lastly, referring to Covid Bashers Inc. for 2019, What is the value of Equity (no commas)? Hints: Remember to adjust Capitalized Cash Flows for various balance sheet items and PVTS on existing assets. Other information: . The business does not have a business cycle 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000. Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20,000 and the CCA rate is 30%. . . Lastly, referring to Covid Bashers Inc. for 2019, What is the value of Equity (no commas)? Hints: Remember to adjust Capitalized Cash Flows for various balance sheet items and PVTS on existing assets. Other information: . . The business does not have a business cycle - 2019 is an average year. The President (shareholder) has been paid a salary of $40,000 as he wanted to keep his income low for tax reasons but the market-rate for his services would have been $50,000 Marketable Securities are surplus cash in excess of operational needs (FMV $5,000) Shareholder Loan was made to the President to buy a car for his personal use. Expected capital expenditures required in order to sustain operations is estimated to be $2,000 per year. CCA rate on capital assets acquired is 30% The Undepreciated Capital Cost (UCC) balance on the existing assets is $20,000 and the CCA rate is 30%. Company tax rate is 40%. Capital Gains are taxed at 50% and no capital losses allowed on depreciable property. WACC rate is 15% Based on Company's growth prospects, economic and market conditions, capitalization rate is judged to be WACC less 3%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions