According to its 2019 Income Statement, The Legendary Corporation had the following operating results: EBIT of $19,810, Depreciation Expense of $2,340, Interest Expense of $11,750, the firm is subject to a Corporate Tax Rate of 20 percent. At the beginning of the year, the firm registered Net Fixed Assets of $12,300, and Net Working Capital that amounted to $2,970. At the end of the year, the firm declared Net Fixed Assets of $15,000, Current Assets of $5,000, and Current Liabilities of $1,830. (All units are in thousands). What was The Legendary Corporation’s Cash Flow from Assets (CFFA) for 2019?

According to its 2019 Income Statement, The Legendary Corporation had the following operating results: EBIT of $19,810, Depreciation Expense of $2,340, Interest Expense of $11,750, the firm is subject to a Corporate Tax Rate of 20 percent. At the beginning of the year, the firm registered Net Fixed Assets of $12,300, and Net Working Capital that amounted to $2,970. At the end of the year, the firm declared Net Fixed Assets of $15,000, Current Assets of $5,000, and Current Liabilities of $1,830. (All units are in thousands). What was The Legendary Corporation’s Cash Flow from Assets (CFFA) for 2019?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Dietrich Corp. disclosed the following information for 2021. The firm issued $65,000 new equity and $4,790 in dividends. The firm acquired $23,186 in new fixed assets and sold $17,600 of old fixed assets. Net working capital increased by $2,470 during the year. Dietrich Corp. had sales revenue of $264,596, cost of goods sold of $63,864, selling expenses of $53,200, depreciation of $6,780, and tax rate is 20%. a) What is the cash flow from assets of Dietrich Corp. in 2021? b) What is the cash flow to creditors of Dietrich Corp. in 2021? without excel
Dietrich Corp. disclosed the following information for 2021. The firm issued $65,000 new equity and $4,790 in dividends. The firm acquired $23,186 in new fixed assets and sold $17,600 of old fixed assets. Net working capital increased by $2,470 during the year. Dietrich Corp. had sales revenue of $264,596, cost of goods sold of $63,864, selling expenses of $53,200, depreciation of $6,780, and tax rate is 20%. a) What is the cash flow from assets of Dietrich Corp. in 2021? b) What is the cash flow to creditors of Dietrich Corp. in 2021?
Pharoah Corporation, which follows IFRS, began operations on January 1, 2020. For the company's first fiscal year, Pharoah recorded pretax income for accounting purposes of $2,520,000. Depreciation of property, plant, and equipment for financial reporting purposes amounted to $126,000. CCA claimed on the company's tax return was $140,000. Pharoah was subject to a 35% income tax rate. Calculate Pharoah Corporation's taxable income and income tax payable for 2020. Taxable income for 2020 $ Income taxes payable for 2020 24 eTextbook and Media List of Accounts Prepare the journal entries to record the 2020 current and deferred income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.)
The Malia Corporation had sales in 2019 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company’s debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company’s operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
On its 2020 Balance Sheet, Liddle Inc. reported Currents Assets of $215,000, Net Fixed Assets of $1,300,000, Long-Term Debt of $780,000, and Total Equity of $600,000. On the 2021 Balance Sheet, Net Fixed Assets are $1,150,000 and Net Working Capital is $240,000. On the 2021 Income statement, the firm reported Sales of $2,550,000, Earnings Before Interest and Taxes of $1,435,000 and Depreciation of $225,000. In 2021, the firms Cash Flow from Assets was $1,209,250. What were the firm’s Taxes in 2021? Present the answer rounded to the nearest dollar
The following information can be found in Sanduc Merchandising Corporation's financial statement in 2019: cost of sales of 2,450,000; accumulated depreciation of 75,000; operating expenses of 1,050,000; corporate income tax of 32% sales of 4,800,000; 3-year bank loan of 1,000,000 that pays an interest rate of 8.5 per year. determine the net profit before tax of Sanduco
Shenron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first year of operations. During 2020 the company had the following transactions: Received rent from Master, Co. for 2021 P48,000 Municipal bond income P60,000 Depreciation for tax purposes in excess of book depreciation P30,000 Installment sales revenue to be collected in 2021 P81,000 For 2020 what is the amount of income taxes payable for Shenron, Inc? a. P579,600 b. P452,400 c. P514,800 d. P490,800
At December 31, 2022, Cracker Company reported Retained Earnings of $20,000,000. In 2023, Cracker determined that 2021 amortization expense was understated by $1,500,000. In 2023, net income was $6,900,000 and dividends declared were $2,250,000. The company’s tax rate is 20%. Cracker issues comparative income statements and statements of stockholder’s equity for 2022, and 2023. Which of the following statements is true regarding the reporting for this error on Cracker Company’s comparative statements of stockholders’ equity? Answer a. The beginning balance of 2022 retained earnings will be increased for the correction of the error by $1,500,000. b. No adjustment to retained earnings for 2022 or 2023 is necessary because the error occurred in 2021. c. The beginning balance of 2022 retained earnings will be decreased for the correction of the error by $1,200,000. d. The beginning balance of 2023 retained earnings will be decreased for the correction of the…
Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000 per year for both years and made capital expenditures of $45,000 in both years. The company's stock price in 2021 was $12.00 and $10.00 in 2020. In 2021, the industry average earnings multiple was 10, the free cash flow multiple was 20 and sales multiple was 2.00. Thecompany is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2021. a. Calculate the 2021 value of the company using the earnings multiple. b. Calculate the 2021 value of the company using the free cash flow multiple c. Calculate the 2021 book value of the company's equity.
Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000 per year for both years and made capital expenditures of $45,000 in both years. The company's stock price in 2021 was $12.00 and $10.00 in 2020. In 2021, the industry average earnings multiple was 10, the free cash flow multiple was 20 and sales multiple was 2.00. Thecompany is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2021. A. Calculate the 2021 market value of the company. B. Compare Keokuk’s Equity Book Value to the Market Value. Discuss conceptually (not differences in the numerical calculations) the difference between these two amounts.
In the first year of operations 2021, Samuel Inc. had a pre-tax accounting income of $4,050,000 and a rate of 20%. During 2021, Samuel engaged in the following transactions: Received rent for 2021 $144,000 Life insurance premium on officer $30,000 Depreciation for ta purposes in excess of book depreciation $90,000 Prepaid insurance for 2021 $75,000 Compute the amount below. Round to the nearest dollar The December 31, 2020, Deferred Tax Asset Balance is: The December 31, 2020 Deferred Tax Liability Balance is :