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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- Spring '03
- Business, Short-term Debt, Generally Accepted Accounting Principles, net fixed assets