Show all of your work for numerical problems.
1. Based on the following information for ABC Corporation, answer each question (calculate for year
2023). Assume that price per share is $13.33 and number of shares is 175.
2022
2023
Sales
8,000
Cost of goods sold/Expenses
4,900
Depreciation
600
EBIT
?
Interest
450
Taxable Income
?
Taxes
?
Net Income
?
Dividends
1,370
Cash
1,000
1,200
Inventory
1,400
1,600
Account Receivable
1,600
1,800
Current assets
4,000
4,600
Net fixed assets
9,000
9,200
Current liabilities
3,500
3,700
Long-term debt
4,000
4,300
Common stock
3,000
3,050
Retained Earning
2,500
2,750
a. What are the ABC's tax liabilities (tax payments)? Use a 21 percent (flat) tax rate.
b. Calculate cash flow from assets (CF Generating), cash flow to creditors, and cash flow to
stockholders. Check CF identity