Your corporation has the following: Sales $500,000 Total Assets 850,000 Accounts Receivable 75,000 COGS (cost of sales) 60% of sales Accounts payable 50,000 Selling and Admin Expense 25,000 Interest Paid 45,000 Dividends paid 50,000 Assume the firm has a 40% tax rate. How much will the firm pay in taxes? (Remember, think about what is paid before tax and what is paid after tax and what is actually on the income statement and affects taxes versus what is on the balance sheet and does not affect taxes) $52,000 $32,000 $56,500 $20,000

Your corporation has the following: Sales $500,000 Total Assets 850,000 Accounts Receivable 75,000 COGS (cost of sales) 60% of sales Accounts payable 50,000 Selling and Admin Expense 25,000 Interest Paid 45,000 Dividends paid 50,000 Assume the firm has a 40% tax rate. How much will the firm pay in taxes? (Remember, think about what is paid before tax and what is paid after tax and what is actually on the income statement and affects taxes versus what is on the balance sheet and does not affect taxes) $52,000 $32,000 $56,500 $20,000

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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