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FIN 3300 NAME Section 1: Problems (20 marks each) nt as of Dec 2017 (in S mn). C

ID: 2616960 • Letter: F

Question

FIN 3300 NAME Section 1: Problems (20 marks each) nt as of Dec 2017 (in S mn). Complete it! 1. ABC Ltd has following items on its Balance sheet & Income Statement as of Dec 2017 (in S mn) Complete it! Liabilities Assets Cash Account Rec Inventories 523049 488489 635697 Account Payable 6171 631049 Accrual Notes Payable Total Current Liabilities Long Term Debt Total Current Asset 1923469 1201839 262049 Total Liabilities Gross FA 2369556 400000 Depreciation ? Common Equity Net Fixed Asset Total Asset RE Total Equity Total L &E; 485703 Income Statement Sales 6000000 5000000 Cost of Goods Sold Other Expense Total Operating Profit excl. Dep& Amor Earnings before Interest & Tax (EBIT) Earnings Before Tax Net Income 156784 39824 -60176 Depreciation & Amortization Interest 100000 Tax 96667

Explanation / Answer

Total Current Liabilities = Account Payable + Accrual + Notes Payable

= 523049 + 488489 + 635697

= 1647235

Long term debt = Total liabilities - Total Current Liabilities

= 2369556 - 1647235

= 722321

RE = Total Equity - Common Equity

= 485703 - 400000

= 85703

Total L&E = Total Liabilities + Total Equity

= 2369556 + 485703

= 2855259

Inventories = Total Current Asset - Cash - Account Rec

= 1923469 - 6171 - 631049

= 1286249

Net Fixed asset = Gross FA - Depreciation

= 1201839 - 262049

= 939790

Total Asset = Total Current Asset + Net Fixed asset

= 1923469 + 939790

=2863259

Income statement

Sales - COGS - Other Expense = Total Operating profit

6000000 - 5000000 - Other Expense = 156784

Other Expense = 843216

Total Operating profit - Depreciation = EBIT

Depreciation = 843216 - 39824 = 803392

EBIT - Tax = Net Income

-60176 - 96667 = -156843 = Net Income