Your corporation has the following cash flows solve this question general Accounting Your corporation has the following cash flows:Operating income $250,000Interest received10,000Interest paid45,000Dividends received 20,000Dividends paid50,000If the applicable income tax rate is 40 percent, and if 70 percent ofdividends received are exempt from taxes, what is the corporation'stax liability?A) $74,000B) $88,400C) $91,600D) $100,000E) $106,500

Step 1: Treatment of Dividend Received70% of dividends is exempt. So, rest 30% is taxable.Taxable…

Answered: Your corporation has the following cash…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 10MC

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The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Your corporation has the following cash flows: Operating income $250,000 Interest received $ 10,00o0 Interest paid $ 45,000 Dividends received $ 20,000 Dividends paid $ 50,000 If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability? $ 92,820 $102,334 $ 88,400 $ 83,980 O $ 97,461
Your corporation has the following cash flows: Give true answer this accounting question
Assume a corporation has earnings before depreciation and taxes of $145,000, depreciation of $35,000, and that it has a 30% combined tax bracket. What are the after-tax cash flows for the company? a) $112,000 Ob) $106,800 c) $116,600 Od) $115,800 0
In corporation receives solve this accounting questions
Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000, and that it has a 25% combined tax bracket. What are the after-tax cash flows for the company?
Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and that it has a 30 percent tax bracket. Compute its cash flow using the format below. Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes Depreciation
Please answer with question is solution
Provide correct answer
1
a calendar-year C Corporation, is considering investing in a business expenditure with a cost of $10,000. If $8,000 of the cost of the expenditure can be used as a tax credit rather than a tax deduction of $10,000 and the marginal tax rate is 21%, how much additional tax savings would the expenditure generate as a result of the tax credit relative to the tax deduction? a. $2,000 b. $8,000 c. $5,900 d. $2,100

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