Answer please If selling price per unit is $40, variable costs per unit are $25, total fixed costs are $20,000, the taxrate is 30%, and the company sells 5,000 units, net income is.2 Consider the information givenbelow. If the owner contributes $44,800 and the owner withdraws $4,300, how much is the netincome (loss)? Assets LiabilitiesBeginning of YearEnd of Year $60,000$27,000$18,000$26,000Billy's Exterminators, Inc. has sales revenue of $743,000, fixed and variable costs of $294,000,depreciation expense of $46,000, interest expense of $33,000, and an (effective) tax rate of 35percent. What is the net income for this firm?

For the first situationGiven:Selling Price = 4$0Number of units sold = $5000Variable cost = $25Total…

Answered: If selling price per unit is $40,…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
If selling price per unit is $40, variable costs per unit are $25, total fixed costs are $20,000, the tax rate is 30%, and the company sells 5,000 units, net income is? Consider the information given below. If the owner contributes $44,800 and the owner withdraws $4,300, how much is the net income (loss)? Assets Liabilities Beginning of Year End of Year $27,000 $18,000 $60,000 $26,000 Billy's Exterminators, Inc. has sales revenue of $743,000, fixed and variable costs of $294,000, depreciation expense of $46,000, interest expense of $33,000, and an (effective) tax rate of 35 percent. What is the net income for this firm?
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