mgt 640 home work

mgt 640 home work - 30 35 120 390 135 200 65 UBUS Income...

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UBUS Income Statement Cost of Goods Sold 330 Depreciation Expense 35 Interest Expense 20 Operating Expense (excluding depreciation) 115 Sales 600 Tax ??? UBUS Balance Sheet Accounts Payable Accounts Receivable Accruals Accumulated Depreciation (175) Cash Common Stock Fixed Assets (gross) Inventory Long-Term Debt Retained Earnings a) What was UBUS Inc.’s earnings before interest and taxes (EBIT)? Sales 600 Less: Cost of Goods sold -330 Gross Profit 270 b) What is UBUS Inc.’s tax liability? c) What was UBUS Inc.’s Net Income? d) What is UBUS Inc.’s Total Assets? e) What is UBUS Inc.’s Total Equity? f) What is UBUS Inc.’s Net Working Capital? The following question(s) refer to the year-end account balances for UBUS Inc. The accounts are listed in  alphabetical order, NOT in the order they appear on the financial statements. The applicable tax rate is  40%. 35  65 
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Unformatted text preview: 30 35 120 390 135 200 65 UBUS Income Statement Sales 600 Less: Cost of Goods sold 330 Gross Profit 270 Less: Operating expense 115 Depreciation expense 35 150 a) EBIT 120 Less: Interest 20 Earnings before taxes 100 b) Less: 40 c) Net Income 60 UBUS Balance Sheet Equity & Liabilities Assets Liabilities Fixed Assets Accounts Payable 35 Fixed Assets (gross) 390 Accruals 30 Accumulated Depreciation-175 Current Liabilities 65 Fixed Assets (net) 215 Long-Term Debt 200 Total Liabilities 265 Current Assets Equity Cash 35 Common Stock 120 Inventory 135 Retained Earnings 65 Accounts Receivable 65 e) Total Equity 185 Total Current Asset 235 Total Equity & Liabilities 450 d) Total Assets 450 f) Net Working Capital = Current Assets - Current Liabilities Current Assets 235 Less: Current Liabilities 65 Tax Liability @ 40% of earnings before taxes Net Working Capital 170...
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This note was uploaded on 10/25/2008 for the course MGT 640 / 610 taught by Professor I.e during the Spring '08 term at Union.

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mgt 640 home work - 30 35 120 390 135 200 65 UBUS Income...

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