<(Corporate income tax) Last year Sanderson, Inc. had sales of $3.2 million. The firm's cost of goods sold came to$2.0 million, its operating expenses excluding depreciation of $101,000 were $401,000, and the firm paid $146,000 ininterest on its bank loans. Also, the corporation received $53,000 in dividend income (from a company in which itowned less than 20 percent of its shares) but paid $20,000 in the form of dividends to its own common stockholders.to calculate the corporation's tax liability. What areUse the corporate tax rates shown in the popup window,the firm's average and marginal tax rates?The firm's tax liability for the year is $(Round to the nearest dollar.)

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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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Broward Manufacturing recently reported the following information: Net income $770,000 ROA 7% Interest expense $292,600 Accounts payable and accruals $1,000,000 Broward's tax rate is 40%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. ВЕР % ROE % ROIC
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?
Ehrlich & Czarnecki Consulting, Inc. recently reported the following information: Net income = $800,000 Sales = $4,200,000 Total Assets = $9.5 million Tax rate = 40% Interest expense = 20,000 Accounts Payable = 36,000 Notes Payable = 300,000 Accruals = 50,000 After-tax cost of capital = 11% What is the company’s EVA? $-296,358 $-223,540 $-452,391 $-488,029 None of the above is within $100 of the correct answer.
Broward Manufacturing recently reported the following information: Net income ROA BEP: 26.73 Interest expense $102,120 Accounts payable and accruals $950,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. ROE: 73.60 ROIC: 44.55 % % $276,000 % 8%
(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
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.
Mars Corporation has Revenues of $50 million, Tax Expense of $5 million, total Other Expenses of $15 million, and Net Income of $30 million. What is Mars Corporation's income tax RATE? 25.0% 10.0% 14.3% 16.7%
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.
3
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.?

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