Q1O - statement purposes is the same and therefore there is...

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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. 2009 EBITDA 2000 Depreciation ? Interest ? 2008 2009 Trade Capital ? ? Short-Term Debt 600 480 Net Fixed Assets ? ? Equity ? ? Invested Capital ? ? NOTES: "Equity" represents the sum of all of the accounting equity accounts (that is, share- capital plus retained earnings). You can presume that depreciation for tax and for financial
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Unformatted text preview: 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 some of their short-term debt at the end of 2009. ABC made capital expenditures during 2009. The increase in ABC’s Net Fixed Assets from year-end 2008 to year-end 2009 was $300. The increase in ABC’s Trade Capital from year-end 2008 to year-end 2009 was $200. The interest rate on ABC’s short-term debt is 10% per annum. ABC paid dividends to shareholders of $100 during 2009. ABC repurchased $150 of shares from common shareholders during 2009. ABC's tax rate is 40%. Required: Find ABC’s 2009 net income. Solution...
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