Chapter 2 HW I need help with Part A Common Dividends and Addition to retained earnings and Part B Common Stock, retained earnings, Total Common Equity, and Total Liabilities and Equity. ABC Inc. 2011 sales are $900,000. Operating costs (excluding depreciation) are 80% of sales. Net fixed assets are $125,000. Depreciation amounted to 12% of net fixed assets. Interest expenses are $100,000. The tax rate is 30% and ABC Inc. paid 10% in dividends.Complete the following:Sales Revenue 900,000Expenses as a percent of sales (excluding depreciation) 80% Net fixed asset 125,000 Depreciation as a % of net fixed assets 12% Tax rate 30% Interest expense 100,000 Dividend Payout Ratio 10% ABC Inc. Income StatementSales 900,000 Operating costs (excluding depreciation) 900,000 X .80 = 720,000 EDITDA= sales revenue-operating cost = 180, 000Depreciation 125,000 x .12= 15,000 – Depreciation = 165,000Interest Expense 100,000 EBT – taxes= net income 65,000 Taxes 19, 500 6500 x .,500Net Income 45,500 65,000- ,500 Common Dividends __________________ Addition to Retained Earnings ______________________ ABC Inc. issued $20,000 of new common stock in 2011. Fill in the missing information.Assets 2011 2010Cash and Cash Equivalents 40,000 30,000Short term Investments 4,500 8,500Accounts Receivable 156,000 180,000Inventories 80,000 70,000Total current assets 280,500 288,500Net Fixed Assets 125,000 100,000Total Assets 405,500 388,500Liabilities and Equity 2011 2010Accounts Payable 15,000 12,500Accruals 18,500 14,000Notes Payable 9,000 6,000Total Current Liabilities 42,500 32,500Long term debt 123,000 176,950Total Liabilities 165,500 209,450Common Stock ______ 140,000Retained Earnings ______ 39,050Total Common Equity ______ 179,050Total Liabilities and Equity _______ 388,500Chapter 2 HW I need help with Part A Common Dividends and Addition to retained earnings and Part B Common Stock, retained earnings, Total Common Equity, and Total Liabilities and Equity.Complete the following:Sales Revenue 900,000Expenses as a percent of sales (excluding depreciation) 80% Net fixed asset 125,000 Depreciation as a % of net fixed assets 12% Tax rate 30% Interest expense 100,000 Dividend Payout Ratio 10% ABC Inc. Income StatementSales 900,000 Operating costs (excluding depreciation) 900,000 X .80 = 720,000 EDITDA= sales revenue-operating cost = 180, 000Depreciation 125,000 x .12= 15,000 – Depreciation = 165,000Interest Expense 100,000 EBT – taxes= net income 65,000 Taxes 19, 500 6500 x .,500Net Income 45,500 65,000- ,500 Common Dividends __________________ Addition to Retained Earnings ______________________ Assets 2011 2010Cash and Cash Equivalents 40,000 30,000Short term Investments 4,500 8,500Accounts Receivable 156,000 180,000Inventories 80,000 70,000Total current assets 280,500 288,500Net Fixed Assets 125,000 100,000Total Assets 405,500 388,500Liabilities and Equity 2011 2010Accounts Payable 15,000 12,500Accruals 18,500 14,000Notes Payable 9,000 6,000Total Current Liabilities 42,500 32,500Long term debt 123,000 176,950Total Liabilities 165,500 209,450Common Stock ______ 140,000Retained Earnings ______ 39,050Total Common Equity ______ 179,050Total Liabilities and Equity _______ 388,500