Builtrite had sales of $600,000 and COGS of $200,000. In addition, operating expenses were calculated at 30%of sales. Interest expense was $20,000. Builtrite also received dividends of $30,000 and paid out common stockdividends of $25,000 to its stockholders. A long-term capital gain of $30,000 was realized during the year alongwith a capital loss of $40,000.What is Builtrite's taxable income?$230,000$209,000$205,000$184,000Next

The Dividends Received Deduction is a provision in the U.S. tax code that allows certain…

Answered: Builtrite had sales of $600,000 and…

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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Futuristic Development (FD) generated $2 million in sales last year with assets equal to $5 million. The firm operated at full capacity last year. According to FD's balance sheet, the only current liabilities are accounts payable, which equals $460,000. The only other liability is long-term debt, which equals $730,000. The common equity section is comprised of 500,000 shares of common stock with a book value equal to $3 million and $810,000 of retained earnings. Next year, FD expects its sales will increase by 22 percent. The company's net profit margin is expected to remain at its current level, which is 16 percent of sales. FD plans to pay dividends equal to $0.60 per share. It also plans to issue 70,000 shares of new common stock, which will raise $460,000. Estimate the additional funds needed (AFN) to achieve the forecasted sales next year. Round your answer to the nearest dollar.
sidewinder, Inc., has sales of $678,000, costs of $339,000, depreciation expense of $84,000, interest expense of $49,000, and a tax rate of 21 percent. The firm paid out $79,000 in cash dividends. What is the addition to retained earnings?
The management of Sheffield Inc. is trying to decide whether it can increase its dividend. During the current year it reported net income of $871,300. It had net operating activities of $644,000 paid cash dividendes of $80,000 and had capital expenditures of $278,200. Compute the companys free cash flow
Mason Corporation had $1,096,000 in invested assets, sales of $1,217,000, operating income amounting to $231,000, and a desired minimum return on investment of 13%. The profit margin (rounded to one decimal place) for Mason Corporation is
In its most recent financial statements, Nessler Inc. reported $55 million of net income and $880 million of retained earnings. The previous retained earnings were $854 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar.
Last year, Headline News Corporation paid $600,000 in dividends and retained $360,000 of the earnings it generated. The company follows a constant payout ratio dividend policy. If Headline generates $1.5 million ($1,500,000) in income this year, how much will be paid in dividends?
During the year, a merchandising company had the following transactions: Generated 300.000 TL revenue and incurred 225.000 TL expense. Issued new shares of 20.000 at a price of 1,2 TL (par value is 1 TL). Repurchased 10.000 of these new shares at a price of 1,1 TL. Sold these repurchased shares at a price of 0,5 TL. Revalued its headquarters building as well as its one of the rental properties. The increases in the relevant equity and income items have been found to be 15.000 TL and 20.000 TL. Suppose that the ending retained earnings balance in the Statement of Changes in Shareholders Equity is 105.000 TL. Then, what was the opening balance of the retained earnings at the beginning of the year? a) 10.000 TL b) 16.000 TL c) 20.000 TL d) 26.000 TL
Last year, your company had sales of $11,010,980. The firm's costs of goods sold amounted to 60% of sales. The firm also paid cash operating expenses of $1,000,000, and had $173,511 in depreciation expense. The firm had $450,000 in 9% coupon bonds outstanding and paid $40,000 in dividends to its common stockholders. Also, the firm received $100,000 in dividend income from its holdings of other common stocks. Compute the corporation's taxable income i.e. earnings before taxes. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND TO THE NEAREST WHOLE NUMBER AT THE END. DO NOT ENTER THE $ SIGN SYMBOL..i.e. if your answer is 1,000,000 enter it as 1,000,000.
In its most recent financial statements, Nessler Inc. reported $60 million of net income and $660 million of retained earnings. The previous retained earnings were $614 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $
A company had sales of $600 and costs of $300. Depreciation was an additional $150, and interest paid was $30. Taxes were 40% of pretax income. Dividends were $30. Beginning net fixed assets were $500 and ending net fixed assets were $750. The company started the year with a net working capital of $510 and ended with $550. No shares of stock were issued that year A. Calculate net income (nearest dollar without dollar sign ($) or comma, e.g. 15000. Negative cash flow is -15000 B. Calculate operating cash flow (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000
A firm has cash of 300,000, accounts receivable of 70,000, pre paid expenses of 12,000, accounts payable of 50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last year calendar year. What is the firms work capital?

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