Question 4 You are given the following information for ABC Limited: Sales Cost of goods sold Other operating expenses Depreciation expense Interest Dividends Cash Accounts receivable Inventory Net fixed assets Current liabilities Long-term debt Tax rate 2022 $50,000 $30,000 $20,000 $150,000 $40,000 $70,000 30% 2023 $120,000 $70,000 $14,000 $6,000 $3,500 $4,500 2023 $60,000 $35,000 $25,000 $160,000 $60,000 $80,000 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 your calculation. e. What was the cash flow to shareholders for 2023? Show your calculation.
Question 4 You are given the following information for ABC Limited: Sales Cost of goods sold Other operating expenses Depreciation expense Interest Dividends Cash Accounts receivable Inventory Net fixed assets Current liabilities Long-term debt Tax rate 2022 $50,000 $30,000 $20,000 $150,000 $40,000 $70,000 30% 2023 $120,000 $70,000 $14,000 $6,000 $3,500 $4,500 2023 $60,000 $35,000 $25,000 $160,000 $60,000 $80,000 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 your calculation. e. What was the cash flow to shareholders for 2023? Show your calculation.
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
Related questions
Question
Please answered in 20 minutes.
Finance
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 7 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning