Question
You are given the following information for ABC Limited: 2023 Sales $120,000 Cost of goods sold $70,000 Other operating expenses $14,000 Depreciation expense $6,000 Interest
You are given the following information for ABC Limited:
2023 Sales $120,000
Cost of goods sold $70,000
Other operating expenses $14,000
Depreciation expense $6,000
Interest $3,500
Dividends $4,500
2022
Cash $50,000
Accounts receivable $30,000
Inventory $20,000
Net fixed assets $150,000
Current liabilities $40,000
Long-term debt $70,000
Tax rate 30%
2023
Cash $60,000
Accounts receivable $35,000
Inventory $25,000
Net fixed assets $160,000
Current liabilities $60,000
Long-term debt $80,000
Tax rate 30%
Current assets consist of cash, accounts receivable, and inventory.
a. Calculate the earnings before interest and taxes (EBIT) for 2023. Show your calculation.
b. Calculate the amount of income taxes for 2023. Show your calculation.
c. What was the cash flow from assets for 2023? Show your calculation.
d. What was the cash flow to creditors for 2023? Show
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Dynamics Of International Finance
Authors: Ruchi Mehrotra Joshi
1st Edition
1685078389, 978-1685078386
