Question 1 0.5 pts What is Total Tax Expense for the later year (ending year): 50 54 none of the choices are correct 0 36 Question 2 0.5 pts What is Interest Expense for the later year (ending year): none of the choices are correct 40 180 36 Table 2.1 Unilate Textiles: December 31 Balance Sheets ($ millions, except per-share data) 2018 2017 Percentage of Total Assets Amount Amount Percentage of Total Assets $ 15.0 180.0 270.0 5465.0 380.0 $845.0 1896 213 320 55.046 45.0 100.0% $ 40,0 1600 200,0 $400.0 53% 21.3 267 53.396 467 100.096 350.0 $750,0 Assets Cash and equivalents Accounts receivables Inventory Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities (debt Common stock (25 million shares) Retained earnings Total common equity Total liabilities and equity 3.6% 7.1 $ 30.0 60.0 40.0 $130.0 300.0 $430,0 130,0 285.0 $4150 $845.0 15.4% 35.5 50.9% 154 33.7 49.19 100.096 $ 150 55.0 35.0 $1050 255.0 $350.0 130.0 260.0 390.0 $7500 2.09 73 47 14046 34,0 48.0% 173 34,7 52.0 100.0% $16.60 $23.00 $15.60 $25.00 Book value per share - (Common equity/Shares Market value per share (stock price) Additional Information Net working capital Current assets - Current liabilities Net worth - Total assets - Total liabilities $335.0 415.0 $295.0 390.0 Breakdown of net plant and equipment account: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment 5680.0 300.0) $380,0 $600.0 250,0) $350.0 the asset is originally purchased. However, because the asset is used to generate revenues and its life extend for more than one year, depreciation is the methoc that is used to match the expense associated with the decrease in the value of the asset to the years in which revenues are generated by its use. For example Table 2.2 Unilate Textiles: Income Statements for Years Ending December 31 (5 millions, except per share data) 2018 2017 Amount Percentage of Total Sales 100.0% $1435.0 Amount $1.5000 (1.230,0) $ 270,0 (900 Percentage of Total Sales 100.0% (820) 18.096 (60) 18.046 $ 258.3 185.0 159 $ 1800 (500) 12.096 (3.3) 173.3 40.0 12.19 28 Net sales Variable operating costs 82% of sales Gross profit Pored operating costs, except depreciation Earnings before interest taves depreciation and amortization (EBITDA) Depreciation Net operating income (NO) Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (409) Net Income Preferred dividends Earnings available to common stockholders (EAC) Common dividends Addition to retained earnings Per share data (25,000,000 shares): Earnings per share = (EACY/Shares Dividends per share - (Common dividends/Shares The parentheses indicate a negative value 133.3 135.0 98.3 $ 130,0 400 $ 90,0 [ 36.0) 540 00 8.796 (2.7 6.0% ( 24 3.69 ( 24 6.996 2.7) 4196 $59.0 00 $ 540 (29.0 S 25.0 S590 270 $320 $ 2.16 $ 1.16 2.36 $ S 108 accounting and the matching principle. That is revenues are recognized when they are earned, not when the cash is received, and expenses are recognized when they are incurred, not when the cash is paid. As a result, not all of the amounts shown on the income statement represent cash flows. However, as we mentioned in Chapter 1, the -alue of an investment, such as the firm's stock price, determined by the cash flows it generates. Therefore, Table 2.2 shows that Unilate's ne $54 million and the for 2015 ww
