(Corporate income tax) Sandersen Inc. sells minicomputers. During the past year the company's sales were $3.1 million The cost of its merchandise sold came to $1.9 million, and cash operating expenses were $404,000; depreciation expense was $95,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received $47,000 in dividend income but paid $20,000 in the form of dividends to its own common stockholders. Calculate the corporation's tax liability by using the corporate tax rate structure in the popup window, Calculate the gross profits. The gross profits are $ Calculate the operating profits. The operating profits are $. (Round to the nearest dollar.) Calculate the taxable dividend income. The taxable dividend income is $[ Calculate the taxable ordinary income. The taxable ordinary income is $ Calculate the total tax due. The total tax due is $. (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.)

(Corporate income tax) Sandersen Inc. sells minicomputers. During the past year the company's sales were $3.1 million The cost of its merchandise sold came to $1.9 million, and cash operating expenses were $404,000; depreciation expense was $95,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received $47,000 in dividend income but paid $20,000 in the form of dividends to its own common stockholders. Calculate the corporation's tax liability by using the corporate tax rate structure in the popup window, Calculate the gross profits. The gross profits are $ Calculate the operating profits. The operating profits are $. (Round to the nearest dollar.) Calculate the taxable dividend income. The taxable dividend income is $[ Calculate the taxable ordinary income. The taxable ordinary income is $ Calculate the total tax due. The total tax due is $. (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.)

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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Griffey Communications recently realized $90,000 in operating income. The company had interest income of $35,000 and realized $70,000 in dividend income. The company’s interest expense was $60,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends
Holly's Art Galleries recently reported $15.8 million of net income. Its EBIT was $26 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $15.8 million net income by 1 − T = 0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.2 million. The firm's cost of goods sold came to $2.1 million, its operating expenses excluding Kdepreciation of $100,000 were $402,000, and the firm paid $152,000 in interest on its bank loans. Also, the corporation received $55,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $26,000 in the form of dividerids 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.) w an example Data table Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 Marginal Tax Rate 15% 25% 34% 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38 % 35% Over $18,333,333 (Click on the icon in order to copy its contents into a spreadsheet.)…
Griffey Communications recently realized $110,000 in operating income. The company had interest income of $35,000 and realized $70,000 in dividend income. The company’s interest expense was $55,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends. Which of the following most closely matches the tax liability of Griffey Communications? a. $53,750 b. $45,000 c. $40,000 d. $22,500 e. $31,250 Last year, Stewart-Stern Inc. reported $11,250 of sales, $4,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $4,500 of bonds outstanding that carry a 7.00% interest rate, and its federal-plus-state income tax rate was 25.00%. During last year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,500. These…
Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $38 million. Included in the income was interest expense of $3,300,000. The company's tax rate was 40%. Total assets were $465 million, current liabilities were $109,000,000, and $67,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places.
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(Corporate income tax) G. R. Edwin Inc. had sales of $5.99 million during the past year. The cost of goods sold amounted to $2.9 million. Operating expenses totaled $2.56 million, and interest expense was $21,000. Use the corporate tax rates shown in the popup window, to determine the firm'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.) 2 W S X mmand 3 20 E D $ 4 C DOO DDD F4 R F % 5 V FS T G 6 B MacBook Air F6 Y & 7 Data table H Over $18,333,333 35% (Click on the icon in order to copy its contents into a spreadsheet) 44 F7 U N Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 39% $335.001-$10.000.000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% * 8 J DII 76 - Print 1 M 9 K DE Marginal Tax Rate 15% 25% MOSISO 19 O Done 1…
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New Mexico Lumber recently reported that its earnings per share were $2.5. The company has 400,000 shares of stock outstanding. The company's interest expense was $500,000. The corporate tax rate is 38 percent. What was the company's operating income (EBIT)? If necessary, round it to a whole dollar.
(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.4 million. Gross profits totaled $1.08 million, and operating and depreciation expenses were $507,000 and $359,000, respectively. Dividend income for the year was $14,000, 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, LOADING…, to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?
Delta Products recently reported $4,250,000 of sales, $3,200,000 of operating costs other than depreciation, and $250,000 of depreciation. The company had $750,000 of outstanding bonds that carry a 4.25% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the Delta Products spent $350,000 to buy new fixed assets and to invest $75,000 in net operating working capital. How much free cash flow did Delta Products generate?
(Corporate income tax) The Robbins Corporation is an oil wholesaler. The company's sales last year were $1 04 milion, with the cost of goods sold equal to $636,000. The fimm pad interest of $223,000, and is cash operating expenses were $150,000 Also, the fimm received $32,000 in dividend income while paying only $14.000 in dividends to its preferred stockholders Depreciation expense was $156,000 Compute the firm's tax liability by using the corporate tax rate structure in the popup window. Based on your answer, does management need to take any additional action? - X Calculate the gross profits The gross profits are $ (Round to the nearest dollar) Data table (Cick on the following on in order to copy its contents into a spreadsheet) Corporate Tax Rates 15% 25% 34% 35% $0-$50,000 $50,001-$75,000 $75,001-$10,000,000 over $10,000,000 Additional surtax *5% on income between $100,000 and $335.000 3% on ncome between $15,000 000 and $18.333,333