ABC Limited Company Accounting Help

ABC Limited Company Accounting HelpQuestion 1
You are given the following information for ABC Limited:

2017
Sales $1,200,000
Cost of goods sold $700,000
Other operating expenses $140,000
Depreciation expense $60,000
Interest $35,000
Dividends $45,000

 

2016 2017
Cash $500,000$600,000
Accounts receivable $300,000$350,000
Inventory $200,000$250,000
Net fixed assets $1,500,000$1,600,000
Current liabilities $400,000$600,000
Long-term debt $700,000$800,000
Tax rate 30%30%
  1. Calculate the earnings before interest and taxes (EBIT) for 2017. Show your calculation.
    b. Calculate the amount of income taxes for 2017. Show your calculation.
    (Hint: Income taxes = Income before taxes x Tax rate)
    c. What was the cash flow from assets for 2017? Show your calculation.
    d. What was the cash flow to creditors for 2017? Show your calculation.
    e. What was the cash flow to shareholders for 2017? Show your calculation.
    BUSI 2019 Fall 2017 Assignment 1
    Question 2
    The following information was obtained from DEF Corporation:
2017
EBIT $2,000,000
Interest $500,000
Depreciation $1,000,000
Dividends $550,000

 

2016 2017
Long-term debt $6,000,000$6,000,000

ABC Limited Company Accounting Help

Capital spending was $1,500,000 in 2017. The net new equity issuance was $500,000 in 2017.
The applicable tax rate was 30% in year 2017.
Calculate the change in net working capital for 2017. Show your calculation.
(Hint: Income taxes = Income before taxes x Tax rate)
Question 3
In 2017, ABC Corporation purchased a new truck (asset class 10) with a CCA rate of 30% for
$50,000. The company also spent $30,000 to purchase a new rental car (asset class 16) with a
CCA rate of 40%.
Calculate the total CCA for ABC Corporation for each of the first three years. Show your
calculation.
Question 4
We learned in class that agency problems arise in corporations. Can agency problems arise in
sole proprietorships and/or partnerships as well? Explain.