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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Last year, McGinley Company had total equity of $600,000, a return on assets of 10%, and a return on equity of 15%. What was the amount of McGinley's total assets?
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
A company had total revenues of $59 million, operating margin of 35.1%, and depreciation and amortization expense of $13 million over the trailing twelve months. The company currently has $280 million in total debt and $116 million in cash and cash equivalents. The company's shares are currently trading at $33.2 per share and there are 13 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.
At last year’s end, total assets for Roberts Inc. were $1.2 million and accounts payable were $375,000. Sales, which last year were $2.5 million, are expected to increase by 25 percent this year. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Robert Inc. typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 last year, and retained earnings were $295,000. Roberts Inc. plans to sell new common stock in the amount of $75,000. The Firm’s profit margin on sales is 6 percent; and 60 percent of earnings will be retained. Set up Roberts Inc.’s last year balance sheet, to the extent possible, based on the information provided in this problem. Based on the balance sheet setup in Part a above, determine how much was Roberts Inc.’s long-term debt last year? Perform financial forecasting using percent of sales method (i.e., constant ratio method; do not use the AFN Equation) to determine how much…
Company DotThrive reported the following financial results. Operating income is $94.98 million and depreciation and amortization is $6.12 million. The company spent $13.99 million buying new equipment and sold $3.58 million old equipment (this is the after-tax salvage). Net working capital increased by $1.31 million from previous year. The company's tax bracket is 21%. What's the company's Free Cash Flow (FCF) for the year?
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.
Keating Company had a retained earnings balance of $5,820 at the end of last year. This year the company projects sales of $12,850 with a 6% net profit margin and a 25% dividend payout ratio. Forecast the balance of retained earnings at the end of this year..
King Lyon has the following assets: Current assets Capital assets Total assets $3,280,000 8,150,000 $11,430,000 During 4 months of the year, current assets drop to $1,650,000 (total assets will then be $9,800,000). Its operating profit (EBIT) is expected to be $499,500. Its tax rate is 30 percent. Shares are valued at $20. Its capital structure is short-term financing at 3 percent and long-term financing of 30 percent equity, 70 percent debt at 4 percent. a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.) EPS $
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.
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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