Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 What is Builtrite's taxable income? $280,000 $257,000 $232,000 $217,000

Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 What is Builtrite's taxable income? $280,000 $257,000 $232,000 $217,000

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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Zach Ltd. produced the following data for the year 2015 –o Interest Income $4,650,000o Capital Gain realized $50,000o Dividend Income from company’s 25% ownership in XYZ Ltd. $65,000o Corporate tax rate 40%Calculate the tax on Interest Income, tax on Capital Gain and tax on Dividend Income.
7 You have been given the following information for Corky's Bedding Corporation: a. Net sales = $11,250,000. - b. Cost of goods sold = $7,900,000. c. Other operating expenses $150,000. d. Addition to retained earnings = $1,180,000. e. Dividends paid to preferred and common stockholders = $325,000. f. Interest expense = $840,000, all of which is tax deductible. The firm's tax rate is 21 percent. Calculate the depreciation expense for Corky's Bedding Corporation. Note: Round your answer to the nearest dollar amount. Depreciation expense
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Builtrite had sales of $600,000 and COGS of $200,000. In addition, operating expenses were calculated at 30% of sales. Interest expense was $20,000. Builtrite also received dividends of $30,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $30,000 was realized during the year along with a capital loss of $40,000. What is Builtrite's taxable income? $230,000 $209,000 $205,000 $184,000 Next
What is the net asset value of an investment company with $10,400,000 in assets, $590,000 in current liabilities, and 1,110,000 shares outstanding? Round your answer to the nearest cent. $ ..... per share
A firm had after-tax Income last year of $1.0 million. Its depreciation expenses were $0.2 million, and its total cash flow was $1.0 million. What happened to net working capital during the year? Note: Enter your answer in millions rounded to 1 decimal place. Net working capital million
Smashed Pumpkins Company paid $208 in dividends and $631 in interest over the past year. The company increased retained earnings by $528 and had accounts payable of $702. Sales for the year were $16,580 and depreciation was $756. The tax rate was 40 percent. What was the company's EBIT? Multiple Choice $6,632 $1,511 $1,227 $1,858 $2,129
10. An investment entity provided the following data for the current year: Dividend income from investments 10,000,000Distribution income from trusts 500,000Interest income on deposits 700,000Income from bank treasury bills 100,000Income from dealing in securities held for trading 600,000Write-down on securities held for trading 150,000Other income 250,000Finance cost 300,000Administrative staff costs 3,800,000Sundry administrative costs 1,400,000Income tax expense 2,000,000Question 1: What is the income before tax?a. 12,000,000 c. 11,750,000b. 12,150,000 d. 11,550,000 Question 2: What is the total amount of expenses before tax?a. 7,500,000 c. 5,500,000b. 5,650,000 d. 7,650,000 Question 3: What is the net income for the year?a. 6,500,000 c. 4,650,000b. 4,500,000 d. 4,250,000
King Lyon has the following assets: Current assets Capital assets Total assets $3,280,000 8,150,000 $11,430,000 During 4 months of the year, current assets drop to $1,650,000 (total assets will then be $9,800,000). Its operating profit (EBIT) is expected to be $499,500. Its tax rate is 30 percent. Shares are valued at $20. Its capital structure is short-term financing at 3 percent and long-term financing of 30 percent equity, 70 percent debt at 4 percent. a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.) EPS $
Calculating Weighted Average Cost of Capital and Economic Value Added (EVA) Ignacio, Inc., had after-tax operating income last year of $1,197,000. Three sources of financing were used by the company: $2 million of mortgage bonds paying 4 percent interest, $5 million of unsecured bonds paying 6 percent interest, and $10 million in common stock, which was considered to be relatively risky (with a risk premium of 8 percent). The rate on long-term treasuries is 3 percent. Ignacio, Inc., pays a marginal tax rate of 30 percent. Required: 1. Calculate the after-tax cost of each method of financing. Enter your answers as decimal values rounded to three places. For example, 4.36% would be entered as ".044".
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%

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