Answered: MAX Corp. operating income is $300,000.…

Business

Finance

MAX Corp. operating income is $300,000. Interest on LT debt is $9,000. Net income is?

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 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

See similar textbooks

Related questions

Q: Extracts from the financial statements of Persimmon are as follows: Statement of profit or loss…

A: Formula for Return on Capital employed = {Profit before interest and tax / Capital Employed} × 100

Q: LOCKDOWN Corp. has the ending balances as December 31, 2020: Cash - 110,000 Fixed Assets - 155. 000;…

A: "Since you have asked multiple questions, we will solve the first question for you". If you want any…

Q: Total Debt = 800,000; Income before Income Taxes and Interest Expense = 100,000; Total Assets =…

A: Debt to total assets ratio means ratio of debt funds with total assets of the business.

Q: Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the…

A: The external financing needs It is the amount of finance that the business requires from outside…

Q: Total assets - S250,000, long-term debt-S140,000, shareholders' equity = $70,000, current assets are…

A: Answer - Correct Option is E : Between $105000 and $ 125000

Q: Campbell Company has current assets of $10 million of which $3,000,000 are accounts receivable. Its…

A: Financial statements are referred as the records of the business operations and financial…

Q: ordan Manufacturing reports the following capital structure: Current liabilities P100,000 ;…

A: The debt ratio is a financial statistic that determines the amount of debt a company has. The debt…

Q: Presuming the company sells for $100,000,000.00 but also has $10,000,000.00 of debt on the balance…

A: Cash flows are the cash generated from the operation of the business organization. In other words,…

Q: If Alphas, Inc., has a net income of $25 million, total assets of $200 million and total debt of $75…

A: Return on equity (ROE) is a measure of financial performance calculated by dividing net income by…

Q: The Jacks corporation reported the following: i. Net income $ 840,000.00 ii. Accounts payable and…

A: Ratio Analysis: This is the process of computing, determining, and presenting the relationship of…

Q: Total Assets of ABC Financial Co. equals P1,400,000 and owner has a 60% interest over it. How much…

A: This question deals with the balance sheet equation. As per balance sheet equation, asset is always…

Q: The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a…

A: Accounting Equation The entire resources of a corporation are equivalent to the total of its…

Q: Calculate Puson's WACC using ma

A: The weighted average cost of capital measures the typical cost a business pays to finance its…

Q: LJ Shoes has the following data: Assets $10,000; Interest rate 10%; Debt ratio 60%; Total assets…

A: The formula concept is:

Q: Para el año que culmina el 30 de junio de 2018, Northern Air Cooling Corporation tiene: Total…

A: The objective of the question is to calculate the net income, sales, and debt-to-equity ratio for…

Q: Financials of B Ltd are as follows. 10% Debt 6500; Tax 35%. Find cost of Debt. a. 5.60% b. 6.50%…

A: Before cost of debt = 10% Tax rate = 35%

Q: 1. SLM, Inc., with sales of $1,000, has the following balance sheet: SLM, Incorporated Balance Sheet…

A: The percentage of sales method of forecasting is a method that makes forecasting predictions based…

Q: Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is…

A: Given the following information: Total assets: $425 millions Total liabilities: $110 millions…

Q: You find the following financial information about a company: net working capital = $7, 809; total…

A: Net Working Capital = nwc = $1287Fixed Assets = fa = $7809Total Assets = ta = $11,942Long Term Debt…

Q: Kinsella Corporation's statement of financial position showed the following amounts: current…

A: Formula: Long term debt to total equity ratio = Total long term debts / share holders equity…

Q: Nataro, Incorporated, has sales of $676,000, costs of $338,000, depreciation expense of $82,000,…

A: Here, To Find: Net Income =?

Q: 21. Davis Corporation expects the following first year of operations: Sales (90% collectible in…

A: I am confident about the below solution. It seems there is some issue in framing question or…

Q: 16. In Decembe income, interest percent. The R ROA= M

A: Return on assets is very important profitability ratio and indicates that how much is firm efficient…

Q: 22. McLaughlin Corporation's statement of financial position showed the following amounts: current…

A: Total debt to total assets is computed by dividing the total liabilities with total assets.…

Q: 3. (a) Debt is 20% of assets for an organization. Total assets are$10,000. The tax rate is 40%. The…

A: (a) Debt at 20% of AssetsCalculate Debt and Equity:Debt = 20% * $10,000 = $2,000Equity = $10,000 -…

Q: The income statement for Northeast Co. is shown below. How much is net operating profit after taxes…

A: The net income of the company refers to the excess of revenues of the company over the costs that…

Q: Cash A/R Inventories Total CA Fixed Assets Total Assets Balance Sheet $100 Accounts Payable $2,000…

A: Additional funds needed refers to the concept of finance which is used by the business for…

Q: SLM, Inc., with sales of $1,000, has the following balance sheet:SLM, Incorporated Balance Sheet as…

A: The percentage of sales method of forecasting is a method that makes forecasting predictions based…

Q: Wainscot Industries has $50,850 of working capital, $36,320 of current liabilities, and $116,880 of…

A: The difference between the current assets and current liabilities is called the Working Capital.…

Q: The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a…

A: 1.Current ratio is calculated as follows:-Current ratio = 2.profit margin is calculated as…

Q: The Amer Company has the following characteristics: Sales 1,000 Total assets 1,000 Total debt/Total…

A: ROE = Net Income / Shareholder's Equity

Question

MAX Corp. operating income is $300,000. Interest on LT debt is $9,000. Net income is?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Given information

VIEW

Step 2: Calculation of the net income

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The lawrence company has a ratio of long term debt to long term debt plus equity of .25 and a current ratio of 1.5. current liabilities are 900, sales are 6230 , profit margin is 8.1 percent what is the amount of the firms net fixt assets ?
The Jacks corporation reported the following:i. Net income $ 840,000.00ii. Accounts payable and accruals $1,270,650.00iii. Interest expense $ 305,000.00iv. Return on asset 16%v. Tax rate 30%As the company’s business analyst, you know that Jacks finances only with debt and equity. 45%of its total invested capital is debt. Calculate and interpret the basic earnings power ratio, thereturn on equity, and the return on invested capital. Please show work
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels current ratio? a. 3 c. 1 b. 2 d. 0.5
The Amer Company has the following characteristics: Sales 1,000 Total assets 1,000 Total debt/Total assets 35.00% Basic earning power (BEP) ratio 20.00% Tax rate 40.00% Interest rate on total debt 4,57% What is Amer's ROE? arch
22. McLaughlin Corporation's statement of financial position showed the following amounts: current liabilities, $75,000; total liabilities, $100,000; total assets, $200,000. What is the total debt to total assets ratio? a.1 b.2 c.0.50 d.0.875
Total Debt = 800,000; Income before Income Taxes and Interest Expense = 100,000; Total Assets = 1,000,000. How much is the Debt to Total Assets Ratio?
Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 21% Debt = $700 RU = 10% Question: What is the value of Samuel’s equity?
The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?
E1
21. Kinsella Corporation's statement of financial position showed the following amounts: current liabilities, $75,000; total liabilities, $100,000; total assets, $200,000. What is the total long-term debt to total equity ratio? a.0.375 b.0.125 c.0.75 d.0.25
SLM, Inc., with sales of $1,000, has the following balance sheet:SLM, Incorporated Balance Sheet as of 12/31/X0assetsLiabilities and equityAccounts receivable$200Trade accounts payable$ 200Inventory400Long-term debt600Plant800Equity600$1, 4 0 0$1, 4 0 0It earns 10 percent on sales (after taxes) and pays no dividends.a.Determine the balance sheet entries for sales of $1,500 using the percent of sales method of forecasting