Q1N - capital plus retained earnings You can presume that...

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BUSINESS 312: QUIZ NAME ______________________________ Student Number__________________________ Instructions: Open book and open notes. Work independently. Hand-in no additional sheets of paper; use the back of this quiz if you need more space. If you would like your quiz returned, use pen rather than pencil. Show your work for full marks. No washroom breaks during the examination period. The following information is available on the financial accounts of ABC Corporation. 2008 EBITDA ? Depreciation 50 Interest 25 2007 2008 Trade Capital 650 710 Short-Term Debt ? ? Net Fixed Assets ? ? Equity 900 1,520 Invested Capital ? ? NOTES: "Equity" represents the sum of all of the accounting equity accounts (that is, share-
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Unformatted text preview: capital plus retained earnings). You can presume that depreciation for tax and for financial statement purposes is the same, and therefore, there is no deferred income tax or future income tax liability in this problem (i.e., capital cost allowance is the same as financial statement depreciation). ABC repaid $200 of their short-term debt over the course of 2008. ABC made capital expenditures of $X during 2008. ABC paid dividends to shareholders of $75 during 2008. ABC's tax rate is 40%. Also, during 2008, ABC sold new shares to new shareholders in the amount of $125 (no shares were repurchased). Required: Find ABC’s 2008 capital expenditure, $X. Solution...
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  • Spring '03
  • Alan
  • Business, Short-term Debt, Generally Accepted Accounting Principles, financial statement depreciation, Student Number__________________________ Instructions, Equity Invested Capital, Capital Short-Term Debt

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