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Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

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100%

Accounting what is their tax liabilities

Great news!! Our favorite pizza shop, Joe's
had a record year. They had $4,743,823 in
sales. For the year they had cash operating
expenses of $523,854. They had COGS of
$1,240,000. They had depreciation of
$100,000 (not counted in cash operating
expenses), They paid interest on their bonds
of $114,000. They decided to pay $52,000 in
dividends. They also received $27,000 in
dividend income in a company they have a
45% ownership stake in, what is their tax
liability?

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