Green Office Supplies recently reported $15,500 of sales, $8,250 ofoperating costs other than depreciation, and $1,750 of depreciation. It had$9,000 of bonds outstanding that carry a 7.0% interest rate, and itsfederal-plus-state income tax rate was 40%. How much was the firm'searnings before taxes (EBT) *$4,627$5,638$5,114$5,369$4,870Mori Company's net income last year was $25,000 and cash dividendsdeclared and paid to the company's stockholders totaled $10,000.Changes in selected balance sheet accounts for the year appear below:Increases (Decreases) Debit balances: Accounts receivable $(6,000)Inventory $2,000 Prepaid expenses $(1,000) Long term investments$20,000 Credit balances: Accumulated depreciation $12,000 Accountspayable $9,000 Taxes payable $(5,000) Based solely on this information,the net cash provided by operations under the indirect method on thestatement of cash flows would be: *$46,000$36,000$37,000$4,000

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Green Office Supplies recently reported $15,500 of sales, $8,250 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 federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT) * O $4,627 O $5,638 O $5,114 O $5,369 O $4,870

Green Office Supplies recently reported $15,500 of sales, $8,250 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 federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT) * O $4,627 O $5,638 O $5,114 O $5,369 O $4,870

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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(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.)…
Shrives Publishing recently reported $11,500 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow?
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Lever Age pays an 9% rate of interest on $9.70 million of outstanding debt with face value $9.7 million. The firm's EBIT was $2.3 million. a. What is its times interest earned? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Times interest earned 0.03 X b. If depreciation is $170,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Cash coverage ratio 0.03 X

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