(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $3.5 million. Gross profits totaled $1.01 million, and operating and depreciation expenses were $494,000 and$347,000, respectively. Dividend income for the year was $13,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window,to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?The firm's tax liability for the year is $. (Round to the nearest dollar.)The firm's average tax rate is%. (Round to two decimal places.)The firm's marginal tax rate is %. (Round to the nearest integer.)3EDC80$4RFDOD000F4V%5TFSBA6YMacBook AirF6H&7NData tableMarginal Tax Rate15%25%34%39%$335,001-$10,000,000 34%$10,000,001-$15,000,000 35%$15,000,001-$18,333,333 38%Over $18,333,33335%(Click on the icon in order to copy its contents into a spreadsheet.)44F7DJ*8Taxable Income$0-$50,000$50,001-$75,000$75,001-$100,000$100,001-$335,000MMOSISOPilFA-KPrint- o(9<HDD19O). CDoneOL4F10P>-:;4Icommand optionF11{[+?=1- X"1.F12}Next1delete

Working Note#1Computation of taxable income:Snapshot of cell reference:Snapshot of output:

Answered: (Corporate income tax) Sales for J. P.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 9%, and its marginal tax rate is 25%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,181. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Liabilities And Equity $ 120 Accounts payable and accruals Short-term debt 240 360 Long-term debt 2,160 Common equity $2,880 Total liabilities and equity Calculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round your answer to two decimal places. Assets Cash Accounts receivable Inventories Plant and equipment, net Total assets % $ 10 61 1,120 1,689 $2,880
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.2 million. The firm's cost of goods sold came to $2.2 million, its operating expenses excluding depreciation of $98,000 were $408,000, and the firm paid $146,000 in interest on its bank loans. Also, the corporation received $48,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $22,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window,, to calculate the corporation's tax liability. What are the firm's average and marginal tax rates? The firm's tax liability for the year is $ (Round to the nearest dollar.)
A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents)
TSW Inc. had the following data for last year: Net income = $850; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,800; and Total operating capital = $2,100. Information for the just-completed year is as follows: Net income = $1,200; Net operating profit after taxes (NOPAT) = $950; Total assets = $2,450; and Total operating capital = $2,350. How much free cash flow did the firm generate during the just-completed year? Group of answer choices $595 $770 $700 $630 $735
Cecilia Company reported net income of $1,250,000. The average total liabilities were $4,302,500 and average total stockholders' equity was $5,205,000. Interest expense was $100,500 and the tax rate was 40%. Cecilia's return on assets ratio is closest to: 13.8% 13.1% 12.1% 14.2%
Moose Industries has a corporate tax rate of 25%. Last year the c company realized $14,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year? O a. $9,375,000 O b. $10,500,000 Oc. $3,125,000 O d. $11,625,000 O e. $12,500,000
For the most recent year, Camargo, Incorporated, had sales of $574,000, cost of goods sold of $250,780, depreciation expense of $65,400, and additions to retained earnings of $77,800. The firm currently has 25,000 shares of common stock outstanding and the previous year's dividends per share were $1.54. Assuming a 25 percent Income tax rate, what was the times Interest earned ratlo? Note: Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Times interest earned times
Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $43 million. Included in the income was interestexpense of $2,500,000. The company's tax rate was 40%. Total assets were $475 million, current liabilities were $108,000,000, and $69,000,000 of thecurrent liabilities are noninterest bearing.What are the invested capital and RO1 for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places. Invested Capital: ?ROI: ?
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1. Tommy’s Woodworking had sales of $4 million this past year. Its COGS was $2.75 million and its operating expenses were $800,000. Interest expenses on outstanding debt were $200,000 and the company paid $40,000 in stock dividends. Its tax rate is 35%. What was the company’s taxable income (EBT) and tax liability (tax expense)?
QUESTION: Panda Inc.'s net income for the most recent year was $15,985. The tax rate was 35 percent. The firm paid $3,886 in total interest expense and deducted $2,565 in depreciation expense. What was the company's cash coverage ratio for the year?
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