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You are given the following information for ABC Limited: Sales Cost of goods sold Other operating expenses Depreciation expense Interest Dividends 2020 $60,000 $35,000 $7,000
You are given the following information for ABC Limited: Sales Cost of goods sold Other operating expenses Depreciation expense Interest Dividends 2020 $60,000 $35,000 $7,000 $3,000 $1,750 $2,250 Cash Accounts receivable Inventory Net fixed assets Current liabilities Long-term debt Tax rate 2019 $25,000 $15,000 $10,000 $75,000 $20,000 $35,000 30% 2020 $30,000 $17,500 $12,500 $80,000 $30,000 $40,000 30% a. Calculate the earnings before interest and taxes (EBIT) for 2020. Show your calculation. b. Calculate the amount of income taxes for 2020. Show your calculation. (Hint: Income taxes = Income before taxes x Tax rate) c. What was the cash flow from assets for 2020? Show your calculation. d. What was the cash flow to creditors for 2020? Show your calculation. e. What was the cash flow to shareholders for 2020? Show your calculation
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