Q1Q - 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

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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. 2010 EBITDA 1,480 Depreciation ? Interest ? 2009 2010 Trade Capital ? ? Short-Term Debt ? ? Net Fixed Assets ? ? Equity 1,600 2,000 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 made capital expenditures of $480 during 2010. The increase in ABC’s Net Fixed Assets from year-end 2009 to year-end 2010 was $300. ABC paid dividends to shareholders of $120 during 2010. ABC repurchased $150 of shares from common shareholders during 2010. ABC's tax rate is 40%. The increase in ABC’s Trade Capital from year-end 2009 to year-end 2010 was $200. Required: What was ABC’s dollar interest expense for 2010? Solution...
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This note was uploaded on 02/10/2011 for the course BUS 312 taught by Professor Alan during the Spring '03 term at Simon Fraser.

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