3. For a firm with the following info., what is the Net Working Capital? Prepaid expenses=$2 million, Cash-$4 million, Accounts payable=$3 million, Long-term debt-$40 million, Equity-$10 million, Net property, plant and equipment-$35 million, Accounts receivable-$5 million, Inventory-$10 million. The firm also has some short-term bank loan outstanding (Notes Payable). 4. Use the following tax table to answer this question: Taxable Income $50,000 75,000 100,000 335,000 $0- 50,001- 75,001- 100,001- 335,001- 10,000,000 Tax Rate 15% 25 34 39 34 A company has taxable income of $103,700. How much does it owe in taxes?
3. For a firm with the following info., what is the Net Working Capital? Prepaid expenses=$2 million, Cash-$4 million, Accounts payable=$3 million, Long-term debt-$40 million, Equity-$10 million, Net property, plant and equipment-$35 million, Accounts receivable-$5 million, Inventory-$10 million. The firm also has some short-term bank loan outstanding (Notes Payable). 4. Use the following tax table to answer this question: Taxable Income $50,000 75,000 100,000 335,000 $0- 50,001- 75,001- 100,001- 335,001- 10,000,000 Tax Rate 15% 25 34 39 34 A company has taxable income of $103,700. How much does it owe in taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:3. For a firm with the following info., what is the Net Working Capital? Prepaid expenses-$2
million, Cash-$4 million, Accounts payable=$3 million, Long-term debt-$40 million,
Equity-$10 million, Net property, plant and equipment-$35 million, Accounts receivable-$5
million, Inventory-$10 million. The firm also has some short-term bank loan outstanding (Notes
Payable).
4. Use the following tax table to answer this question:
Taxable Income
$50,000
75,000
100,000
335,000
$0-
50,001-
75,001-
100,001-
335,001- 10,000,000
Tax Rate
15%
25
34
39
34
A company has taxable income of $103,700. How much does it owe in taxes?
Expert Solution
Step 1
Net Working Capital :— Net Working is the Difference between the Total Current Assets - Total Current Liabilities.
Current assets include cash, accounts receivable and inventory. Current liabilities include accounts payable, taxes, wages and interest owed.
Tax Liability :— Tax liability is the total amount of tax owed in a given period, by individuals and organizations, to federal, state, and local governments
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