The Rogers Corporation has a gross profit of $724,000 and $283,000 in depreciation expense. The Evans Corporation also has $724,000 in gross profit, with $48,400 in depreciation expense. Selling and administrative expense is $243,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers Evans b. Calculate the difference in cash flow between the two firms. Difference in cash flow

The Rogers Corporation has a gross profit of $724,000 and $283,000 in depreciation expense. The Evans Corporation also has $724,000 in gross profit, with $48,400 in depreciation expense. Selling and administrative expense is $243,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers Evans b. Calculate the difference in cash flow between the two firms. Difference in cash flow

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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Antonio Company's net income and net sales are $50,000 and $800,000, respectively, and average total assets are $400,000. What is Antonio's return on assets?
Griffin's Goat Farm, Inc., has sales of $675,000, costs of $337,000, depreciation expense of $81,000, interest expense of $50,500, a tax rate of 23 percent, and paid out $42,500 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.)
classy clocks ltd had sales of $1,840,000 . Cost of goods sold, administrative and selling expenses. and depreciation expenses were 1,180,000, 185,000 and 365,000 respectively. IN addition the company had an interest expense of 280,000 and a tax of 35 percent what is the OCF
Two firms have sales of $1.4 million each. Other financial information is as follows: Firm A B EBIT $ 340,000 $ 340,000 Interest expense 20,000 80,000 Income tax 45,000 15,000 Debt 1,990,000 410,000 Equity 1,450,000 2,040,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places. Operating profit margins: Firm A: % Firm B: % Net profit margins: Firm A: % Firm B: % What are their returns on assets and on equity? Round your answers to two decimal places. Return on assets: Firm A: % Firm B: % Return on equity: Firm A: % Firm B: %
Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)? Assets = Liabilities + 4,000 240 240 240 240 a. b. 4,240 C. 4,240 d. 4,240 Multiple Choice Balance Sheet O Option C Option A Option B Option D Stockholders' Equity 3,760 4,000 4,000 4,000 Revenue 3,760 4,000 4,000 4,240 Income Statement Expense n/a n/a n/a n/a = Net Income 3,760 4,000 4,000 4,240 Statement of Cash Flows 3,760 OA 4,240 OA n/a 4,240 OA
You are given the following information for Troiano Pizza Company: sales = $84,700; costs = $58,900; addition to retained earnings = $8,100; dividends paid = $3,500; interest expense = $3,210; tax rate = 23 percent. Calculate the depreciation expense for the company. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
ang Services has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense? Multiple Choice a. $2,300 b. $3,709 c. $2,640 d. $780 e. $3,577
Wims, Inc., has sales of $19.9 million, total assets of $14.9 million and total debt of $5.7 million. The profit margin is 12 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) C. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Net income a. b. ROA C. ROE % %
what is the income...
Garden Pro Corporation has sales of $4,374,312; income tax of $562,963; the selling, general and administrative expenses of $291,061; depreciation of $399,602; cost of goods sold of $2,863,521; and interest expense of $105,428. Calculate the firm's net income?
A profitable company pays $98,000 wages and has depreciation expense of $98,000.

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