Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question

Transcribed Image Text:ines)
Text Predictions: On
ABC Inc.
Balance Sheet as at December 31, 2015 and 2016 ($ thousands)
Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
Fixed Assets
Property, Plant & Equipment
Less Accumulated Depreciation
Property, Plant & Equipment, net
Total Assets
Liabilities and S/H Equity
Current Liabilities
Accounts Payable
Notes Payable and short-term debt
Total Current Liabilities
Long-Term Debt
Shareholders Equity
Common Shares
Pald-In Capital
Retained Earnings
Total
Total Liabilities and S/H Equity
ABC Inc.
Income Statement for 2015 and 2016 ($ thousands)
Revenue
Cost of Goods Sold
Operating Expenses
Depreciation
Earnings Before Interest & Taxes (EBIT)
Interest Paid
Income Before Taxes (EBT)
Taxes Paid
Net Income (N1)
Dividend
Accessibility: Investigate
O sente
2015
$ 200
450
550
$1,200
2,200
(1.000)
1,200
$2,400
$ 200
0
$ 200
$ 600
*****
$1,600
$2,400
2015
$1,200
700
30
220
$ 250
50
$ 200
300
600
700
8.0
S 120
1
2016
2016
$1,450
850
40
200
$360
60
$ 300
120
$ 180
$ 80
$ 150
425
625
$1,200
2,700
11.200)
1.500
$2,700
$ 150
150
300
300
600
800
$1,700
$2,700
700
I

Transcribed Image Text:e) Calculate the Net Working Capital (NWC) for 2016 = Total Current Assets - Total Current
Liabilities = $1,200 $300 = $900
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