ZuoTi.Pro
Question

1. ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net...

1. ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net fixed assets are $205,000. Depreciation amounted to 15% of net fixed assets. Interest expenses are $100,000. The tax bill must be calculated using the corporate income tax table in the text, and ABC Inc. paid 8% of net income in dividends.

Prepare ABC Inc.’s income statement for 2018:

Sales 1,100,000

Operating costs (excluding depreciation) 1,100.000 X .70=770,000

EBITDA 1,100.00-770,00=330,00

Depreciation 205,000 x .15= 30,750

EBIT 330,000-30,750=299,250

Interest Expense 100,000

EBT 299,250-100,000=199,250

The answers below are what I need help with

Taxes***

Net Income

Common Dividends

Addition to Retained Earnings

Operating Cash Flow

***For Tax Rate use the corporate tax table in chapter 2 to determine the company’s tax bill, average and marginal tax Use the average tax rate for this portion of the income statement.

Average tax ________

Marginal tax ________

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ales Op tos EBITDA LOn 110000 33oaDo 30150 299250 199250 29100 EAT 119550 119550 Common Divideuo o1 net tuceme 려 8./ 119550 Addition h Retained El 119550-9564 e) gioggeh Operating Coah plous ) 119550 ± 30750土 10000 一given- a batut tax sa te Jo

0 0
Add a comment
Know the answer?
Add Answer to:
1. ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If a corporation’s taxable income is It pays that amount on the base of the bracket...

    If a corporation’s taxable income is It pays that amount on the base of the bracket Plus this percentage on the excess over the base Average tax rate at top of bracket Up to 50,000 0 15% 15.0% 50,000-75,000 7,500 25 18.3 75,000-100,000 13,750 34 22.3 100,000-335,000 22,250 39 34.0 335,000-10,000,000 113,900 34 34.0 10,000,000-15,000,000 3,400,000 35 34.3 15,000,000-18,333,333 5,150,000 38 35.0 Over 18,333,333 6,416,667 35 35.0 1. ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70%...

  • Tax table Calculations used for taxes =22250+((199250-100000)*0.39) If a corporation’s taxable income is It pays that...

    Tax table Calculations used for taxes =22250+((199250-100000)*0.39) If a corporation’s taxable income is It pays that amount on the base of the bracket Plus this percentage on the excess over the base Average tax rate at top of bracket Up to 50,000 0 15% 15.0% 50,000-75,000 7,500 25 18.3 75,000-100,000 13,750 34 22.3 100,000-335,000 22,250 39 34.0 335,000-10,000,000 113,900 34 34.0 10,000,000-15,000,000 3,400,000 35 34.0 15,000,000-18,333,333 5,150,000 38 35.0 Over 18,333,333 6,416,667 35 35.0 Can you please check my operating...

  • ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net fixed...

    ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net fixed assets are $205,000. Depreciation amounted to 15% of net fixed assets. Interest expenses are $100,000. The tax bill must be calculated using the corporate income tax table in the text, and ABC Inc. paid 8% of net income in dividends. ABC Income Statement 2018 Sales...............................................................                                                                                                                  Operating costs (excluding depreciation).............                                             EBITDA..............................................................                                                                                                            Depreciation.......................................................                                                                                                   EBIT ..................................................................                                                                                                           Interest Expense.................................................                                                                                           EBT....................................................................                                                                                                                  Taxes*** ................

  • Module For operating cash flow I used net income + depreciation but my professor states that...

    Module For operating cash flow I used net income + depreciation but my professor states that is the wrong answer. Is there another way to calculate operating cost? If so can you please show me and explain? Thank you Sales                                                                                                                   1,100,000 1,100,000 Operating costs (excluding depreciation)                                                   1100000.000 0.70 770,000.00 EBITDA                                                                                                             1100000.000 770,000 330,000.000 Depreciation                                                                                                    205,000 0.15 30,750.00 EBIT                                                                                                                  330,000 30,750 299,250 Interest Expense                                                                                            100,000 EBT                                                                                                                   299,250 100,000 199,250 Taxes***                                                                                                         60957.5 60,958 Net Income                                                                                                    199,250 60,958 138,292 Common Dividends                                                                                     110634 11,064...

  • Module 2 Assignment ABC Inc. 2020 sales are $1,000,000. Operating costs (excluding depreciation) are 65% of...

    Module 2 Assignment ABC Inc. 2020 sales are $1,000,000. Operating costs (excluding depreciation) are 65% of sales. Net fixed assets are $195,000. Depreciation amounted to 12% of net fixed assets. Interest expenses are $105,000. The tax bill must be calculated using the corporate income tax table in the text, and ABC Inc. paid 8% of net income in dividends. Prepare ABC Inc.’s income statement for 2018: ABC Inc. Income Statement 2020 Sales Operating costs (excluding depreciation) EBITDA Depreciation EBIT Interest...

  • Problem: Income Statement. The ABC Company had revenues of $925,000 in 2018. Its operating expenses (excluding...

    Problem: Income Statement. The ABC Company had revenues of $925,000 in 2018. Its operating expenses (excluding depreciation) amounted to $325,000, depreciation charges were $125,000, and interest costs totaled $55,000. If the firm pays a marginal tax rate of 34 percent, calculate its net income after taxes. Please give answer to the question with an in depth explanation that brakes down the question and the answer to the best of your capability.

  • INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $4,000,000 Operating costs excluding depreciation...

    INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $4,000,000 Operating costs excluding depreciation & amortization 2,200,000 EBITDA $1,800,000 Depreciation and amortization 600,000 EBIT $1,200,000 Interest 200,000 EBT $1,000,000 Taxes (40%) 400,000 Net income $600,000 The CEO would like to see higher sales and a forecasted net income of $1,020,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 15%. The tax rate, which...

  • INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation...

    INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation & amortization 5,500,000 EBITDA $4,500,000 Depreciation and amortization 1,300,000 EBIT $3,200,000 Interest 500,000 EBT $2,700,000 Taxes (40%) 1,080,000 Net income $1,620,000 The CEO would like to see higher sales and a forecasted net income of $2,835,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 14%. The tax rate, which...

  • INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $5,000,000 Operating costs excluding depreciation...

    INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $5,000,000 Operating costs excluding depreciation & amortization 2,750,000 EBITDA $2,250,000 Depreciation and amortization 300,000 EBIT $1,950,000 Interest 300,000 EBT $1,650,000 Taxes (40%) 660,000 Net income $990,000 The CEO would like to see higher sales and a forecasted net income of $1,930,500. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 9%. The tax rate, which...

  • Sales $4,100.00 Operating costs excluding depreciation 3,053.00 EBITDA $1,047.00 Depreciation 300.00 EBIT $747.00 Interest 170.00 EBT...

    Sales $4,100.00 Operating costs excluding depreciation 3,053.00 EBITDA $1,047.00 Depreciation 300.00 EBIT $747.00 Interest 170.00 EBT $577.00 Taxes (40%) 230.80 Net income $346.20 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 4% higher than $4.1 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 80% of sales. Depreciation costs are expected to increase at the same rate as sales. Interest costs are expected to remain...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT