Problem #5 (32 Marks) Use the following information for ABC Inc. the answer the following questions (the applicable tax rate is 34%): 2018 2017 25,872,000 23.146,000 3,322,000 Sales 3,472,000 Depreciation 9,414,000 7,958,000 Cost of Goods Sold 1,648,000 1,892,000 Other Expenses 1,552,000 1,852,000 Interest 12,932,000 12,134,000 Cash 16,068,000 18,854,000 Accounts Receivable 3,422,000 2,294,000 Short-term Notes Payable 40,640,000 49,392,000 Long-term Debt 101,776,000 108,546,000 Net Fixed Assets 8,768,000 9,288,000 Accounts Payable 28,566,000 30,576,000 Inventory 2,822,000 3,236,000 Dividends a) Draw up a statement of comprehensive income and statement of financial position for this company for 2017 and 2018. 15 marks b) Prepare the cash flow statement. 5 marks c) For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders. 12 marks Empire Co. has a preferred stock issue and a common stock issue. Both have just id a $ Preleral stoc dividend. a) Name four ways in which preferred stock differs from common stock! (4 marksidends are b) Since the common shareholders will have a higher required return, should the common shares sell for a higher price? Explain! (2 marks) c) If the common shares were selling for $50, with a 2% dividend growth rate, what rate of return would you earn