(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.07 million, with the cost of goods sold equal to $660,000. The firm paid interest of $199,500 and its cash operating expenses were $105,000. Also, the firm received $42,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $14,000 in dividends to its stockholders. Depreciation expense was $50,000. Use the corporate tax rates shown in the popup window,, to compute the firm's tax liability. What are the firm's average and marginal tax rates? The Robbins Corporation's tax liability for the year is $ (Round to the nearest dollar.)

(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.07 million, with the cost of goods sold equal to $660,000. The firm paid interest of $199,500 and its cash operating expenses were $105,000. Also, the firm received $42,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $14,000 in dividends to its stockholders. Depreciation expense was $50,000. Use the corporate tax rates shown in the popup window,, to compute the firm's tax liability. What are the firm's average and marginal tax rates? The Robbins Corporation's tax liability for the year is $ (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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(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.)…
Moncton Meats is a corporation that earned $3 per share before it paid any taxes. The firm retained $1 of after-tax earnings for reinvestment, and distributed what remained in dividend payments. You hold 20,000 shares of Moncton Meats in a tax-free savings account. If the corporate tax rate was 30% and dividend earnings were taxed at 20%, what was the value of your dividend earnings received after all taxes are paid?
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.
In 20X2, the corporate tax rate is 20% and a firm has net income of $1,200. Its capital structure consists of 400 common shares outstanding, 50 executive stock options issued on July 1, 20X2, with exercise prices of $30. In 20X2, the firm pays dividends of $3 per common share. The average stock price is $35 during the first half of the year, $45 during the second half of the year. What is the firm's diluted earnings per share for 20X2?
The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 10%, 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 $1,183. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Cash Assets Accounts receivable Inventories Liabilities And Equity $ 120 Accounts payable and accruals $ 10 53 240 360 Short-term debt Long-term debt 1,130 30 Plant and equipment, net Total assets 2,160 $2,880 Common equity Total liabilities and equity 1,687 $2,880 Calculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round your answer to two decimal places. %
Russell’s has annual revenue of $387,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 30 percent. The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share. The firm has $48,000 of cash of which $29,500 is needed to run the business. What is the firm’s EV/EBITDA ratio? a, 5.57 b. 4.69 c. 3.39 d. 3.93 e. 6.20
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.
b. ABC Inc. finances its operations with 40 percent debt and 60 percent equity. Its net income is $30 million and it has a dividend payout ratio of 30%. Its capital budget is B = $100 million this year. The annual yield on the company's debt is 7% and the company's tax rate is T = 30%. The company's common stock trades at Po = $100 per share, and its current dividend of Do = $4 per share is expected to grow at a constant rate of g = 5% a year. The floatation cost of external equity, if issued, is F = 1.5% of the dollar amount issued. What is the company's weighted average cost of capital?
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.
Kobe Capital Corp. recently reported $19,500 of sales, $8,100 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its income tax rate was 40%. How much was the firm's earnings before taxes (EBT)? Your answer should be between 8505 and 10280, rounded to even dollars (although decimal places are okay), with no special characters.
National Co. has a financial break-even point at P260,000. Th company paid an annual interest of P80,000 and has an applicable corporate tax rate of 45%. How much is annual preferred dividends paid by National Co.?