Asked by Tiffani Duncan on Jun 10, 2024
Verified
The following question(s)refer to the year-end account balances for UBUS, Inc. The accounts are listed in alphabetical order, NOT in the order they appear on the financial statements. The applicable tax rate is 40%.
UBUS Income Statement
UBUS Balance Sheet
a)What was UBUS Inc.'s earnings before interest and taxes (EBIT)?
a. $155
b. $120
c. $100
d. $215
e. $200
b)What is UBUS Inc.'s tax liability?
a. $48
b. $60
c. $55
d. $40
e. $35
c)What was UBUS Inc.'s Net Income?
a. $72
b. $45
c. $60
d. ($20)
e. $100
d)What is UBUS Inc.'s Total Assets?
a. $420
b. $570
c. $625
d. $450
e. $490
e)What is UBUS Inc.'s Total Equity?
a. $115
b. $120
c. $185
d. $205
e. $240
f)What is UBUS Inc.'s Net Working Capital?
a. $35
b. $70
c. $100
d. $130
e. $170
Earnings Before Interest And Taxes (EBIT)
A measure of a firm’s performance without regard to how it is financed.
Net Working Capital
A measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.
Total Equity
The financial value representing the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debts were paid off.
- Know how financial statements reflect a company's fiscal health, including equity, net income, and net working capital.
Verified Answer
MT
Mason TwittyJun 17, 2024
Final Answer :
a) b $600-$330-$115-$35=$120
b) d EBT=$120-$20=$100
Tax=$100 × .4=$40
c) c $100 − $40=$60
d) d $35+$65+$135+$390-$175=$450
e) c $120 + $65 = $185
f) e $35+$65+$135-$35-$30=$170
b) d EBT=$120-$20=$100
Tax=$100 × .4=$40
c) c $100 − $40=$60
d) d $35+$65+$135+$390-$175=$450
e) c $120 + $65 = $185
f) e $35+$65+$135-$35-$30=$170
Learning Objectives
- Know how financial statements reflect a company's fiscal health, including equity, net income, and net working capital.