Question:During the year, the Senbet DiscountTire Company had gross sales of$1.08 million. The firm's cost ofgoods sold and selling expenses were$527,000 and $217,000, respectively.The firm also had notes payable of$820,000. These notes carried aninterest rate of 5 percent.Depreciation was $132,000. Thefirm's tax rate was 40 percent.What was the firm's net income?

Particulars AmountGross sales$108,000.00Less : Cost of goods sold$527,000.00Less: Selling…

Answered: Question: During the year, the Senbet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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This year a firm had revenues of $10,000 and total expenses of $8,000. The firm also increased their inventory by $500, accounts receivable by $300 and accounts payable by $400.The firm also purchased a new $1,000 piece of machinery. The firm recorded $200 in depreciation and paid $200 in interest. The firm’s tax rate is 21%. What is the free cash flow for the firm?
What was the firm's net income if the firm paid income taxes of $2,000 and the average tax rate was 25%, O A. $1,000 B. $6,000 O c. $8000 O D. $7,000
At the Bartholomew Company last year all sales were for cash and all expenses were paid in cash. The tax rate was 30%. If the after-tax net cash inflow from these operations last year was $10,500, and if the total before tax cash expenses were $35,000, then the total before-tax cash sales must have been: (M) A. $65,000. B. $60,000. C. $45,000. D. $50,000.
Shane Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, generaland administrative expenses are $550,000 and its research and development is $1.3million. It has annual depreciation charges of $1.4 million and a tax rate of 35%. a. What is Local's gross margin? (answer in %, Round to one decimal place.)
(Corporate income tax) G. R. Edwin Inc. had sales of $5.99 million during the past year. The cost of goods sold amounted to $2.9 million. Operating expenses totaled $2.56 million, and interest expense was $21,000. Use the corporate tax rates shown in the popup window, to determine the firm'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.) The firm's average tax rate is %. (Round to two decimal places.) The firm's marginal tax rate is %. (Round to the nearest integer.) 2 W S X mmand 3 20 E D $ 4 C DOO DDD F4 R F % 5 V FS T G 6 B MacBook Air F6 Y & 7 Data table H Over $18,333,333 35% (Click on the icon in order to copy its contents into a spreadsheet) 44 F7 U N Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 39% $335.001-$10.000.000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% * 8 J DII 76 - Print 1 M 9 K DE Marginal Tax Rate 15% 25% MOSISO 19 O Done 1…
Rose inc. had sales of $7 million during the past year. The cost of goods sold amounted to $4 million. Operating expenses totaled $2.6 million and interest expense was $40000. Determine the firm's tax liability.
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Last year, Roswin Robotics have $5,000,000.00 in operating income (EBIT). Its depreciation expense was $1,000,000.00, its interest expense was $1,000,000.00 and its corporate tax rate was 40%. At year-end, it had $14,000,000.00 in current assets, $3,000,000.00 in accounts payable, $1,000,000.00 in accruals, $2,000,000.00 in notes payable and $15,000,000.00 in net PPE. Roswin had no other current liabilities. Assume that Roswin's only non-cash item was depreciation. Compute for the following: 1. Net Income 2. Net Operating Working Capital (NOWC) 3. Net Working Capital (NWC)

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