?The Robbins Corporation is an oil wholesaler. The firm's sales last year were $ 1.07 million,with the cost of goods sold equal to $ 630000 The firm paid interest of $238,250 and its cashoperating expenses were $102,000. Also, the firm received $41,000 in dividend income from afirm in which the firm owned 22 %of the shares, while paying only $11,000 in dividends to itsstockholders. Depreciation expense was $48,000. Use the corporate tax rates shown in thepopup window, to compute the firm's tax liability. What are the firm's average and marginal taxrates. The Robbins Corporation's tax liability for the year is

Tax liability refers to the amount of the statutory dues based on the taxable income of a taxable…

Answered: ?The Robbins Corporation is an oil…

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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Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding . . . . . . . . . . $400,000 Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $730,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of…
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(Related to Checkpoint 4.3) (Profitability analysis) Last year the P. M. Postem Corporation had sales of $405,000, with a cost of goods sold of $112,000. The firm's operating expenses were $125,000, and its increase in retained earnings was $76,440. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.56 dividend per share, and the firm has no interest-bearing debt. a. Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. a. Assuming the firm's earnings are taxed at 35%, construct the firm's income statement. Complete the income statement below: (Round to the nearest dollar.) Income Statement Revenues Cost of Goods Sold Gross Profit Operating Expenses Net Operating Income Interest Expense Earnings before Taxes Income Taxes Net Income GA SA ...
Russell’s has annual revenue of $387,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 30 percent. The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share. The firm has $48,000 of cash of which $29,500 is needed to run the business. What is the firm’s EV/EBITDA ratio? a, 5.57 b. 4.69 c. 3.39 d. 3.93 e. 6.20
A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 490 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per year and costs $32 per share. The common stock costs $29 per share. How much will they pay in dividends to the common stockholders?
The Rock Timber Co. Had total earnings last year of P5million but expects total earnings to drop to P4,750,000 this year because of a slump in the housing industry. There are currently one million shares of common stock outstanding. The company has P4million worth of investments to undertake this year. The company financed 40% of its investment with debt and 60% with equity capital. The company paid P3 per share in dividends last year. a. If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year? b. If the company maintains a constant payout ratio each year, how large will each shareholder receive this year? c. If the company follows a constant Peso dividend policy, how large a dividend will each stockholder receive this year?
(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.
AA Inc. is manufacturing various types of classic furniture. Currently, the operating income of the property is about RM 6 million. Meanwhile, the company has earnings available for common stockholders of RM 3 million and has 1,000,000 shares of common stock outstanding at RM 2.00 per share. AA Inc. is currently contemplating the payment of RM 3.50 per share in cash dividend. The company has a tax rate of 24%. i) Calculate the firm's current earnings per share (EPS) and price/earnings (P/E) ratio. ii) If the firm can repurchase stock at RM 2.50 per share, how many shares can be purchased under the proposed cash dividend payment? iii) How much will the EPS be after the proposed repurchase?
The W.C. Pruett Corp. has $800,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 12%. In addition, it has $700,000 of common equity on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $4.8 million, its average tax rate is 25%, and its profit margin is 2%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places. TIE: ROIC: X %
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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