3. Flower Plc has the following projected information: Year ended Profit before Capital allowances Depreciation 31 December depreciation 180,000 172,800 158,400 144,000 2015 57,600 11,520 11,520 80,640 11,520 46,080 34,560 23,040 2016 2017 2018 The tax rate for Flower Plc is 35%. There is no deferred tax balance brought forward as at 1 January 2015. (c) Show the tax and deferred tax in the income statements and the deferred tax in the statements of financial position for Flower Plc for the years 2015 to 2018 under the flow through method and the full provision method.

3. Flower Plc has the following projected information: Year ended Profit before Capital allowances Depreciation 31 December depreciation 180,000 172,800 158,400 144,000 2015 57,600 11,520 11,520 80,640 11,520 46,080 34,560 23,040 2016 2017 2018 The tax rate for Flower Plc is 35%. There is no deferred tax balance brought forward as at 1 January 2015. (c) Show the tax and deferred tax in the income statements and the deferred tax in the statements of financial position for Flower Plc for the years 2015 to 2018 under the flow through method and the full provision method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following informationYear Profit Ending book value of assets Ending book value of debt1 $100 $1 030 $7202 $120 $1 060 $7403 $60 $1 000 $800At the end of year t, the company’s book value of assets and debt are $1 000 and $700, respectively. The analyst expects that after year t+3 profit will be $0 and the book values of assets and debts will not change from the prior year. The cost of equity (WACC) is 10 per cent. Calculate the present value of free cash flows for the end of each year.
company reported $58,000 of depreciation expense on its income statement in 2015 and $32,000 in 2016. On its tax returns, Morgan deducted $84,000 for depreciation in 2015 and $94,000 in 2013. The 2016 tax return shows a tax obligation (liability) of $38,400 based on a 40% tax rate.Deferred Income Taxes What is the deferred tax liability for 2016?
The components of income before tax were: Years ended December 31 ($ millions) 2018 U.S. Non-U.S. Total 2017 2016 $12,283 $10,626 $5,925 482 492 437 $12,765 $11,118 $6,362 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) Current tax expense U.S. federal 2017 2016 Non-U.S. U.S. State Total current $1,967 $1,340 $1,253 $169 $149 $133 97 23 15 Deferred tax expense U.S. federal $2,233 $1,512 $1,401 $224 $(598) $(1,096) Non-U.S. $(4) $3 $(4) U.S. State 5 (6) (44) Total deferred $(1,095) $221 $(646)
23. Operating income and tax rates for CJ. Company's first three years of operations were as follows: Amount a. $325,000 b. $340,000 2014 2015 2016 c. $325,000 d. $340,000 Income $300,000 ($850,000) $1,060,000 Assuming that C.J. Company opts to carryforward its 2015 NOL, what is the amount of deferred tax asset or liability that C.J. Company would report on its December 31, 2015 balance sheet? Enacted tax rate 35% 30% 40% Deferred tax asset or liability Deferred tax liability Deferred tax liability Deferred tax asset Deferred tax asset
16. In December 2020, Remal Co. had AED 200 million debt, AED 40 million in operating income, interest expense AED 4 million, AED 450 million in total assests and tax rate 35 percent. The ROA ratio is: ROA= Net Income + Interest exp Total assets.
Suppose SAMI company had an additional $4 million depreciation expense in 2023. If SAMI's tax rate on pretax income is 35%, what would be the impact of this expense on SAMF's net income? OA. Decrease by $26 million OB. No change OC. Decrease by $1.4 million OD. Decrease by $4 million CHED
A company has profit before interest and tax of £66000Interest payable is £6000Tax is payable at 25% What is the profit after Tax? £
1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all…
2. For the year 2021, Rattner Robotics had $5 million in operating income (EBIT). Its depreciation expense was $1.5 million, its interest expense was $1 million, and its corporate tax rate was 35%. At the end of year 2021, it had $10 million in operating current assets, $3 million in accounts payable, $1 million in accruals, and $2 million in notes payable. Assume Rattner has no excess cash and no other current liabilities. Assume that Rattner's only noncash item was depreciation. a) What was the company's net income for the year 2021?tion bona 158 b) What was its net operating working capital (NOWC) for the year 2021? c) Rattner reported $4 million in capital expenditure for the year of 2021. Rattner's NOWC for the prior year (year 2020) is $5.5 million. What is the company's free cash flow (FCF) for the year of 2021? (Hint: you need your results from part b to calculate this question).
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