Taxable income. As a result of several mergers and acquisitions, stock in four companies has been distributed among the companies. Each row of the following table gives the percentage of stock in the four companies that a particular company owns and the annual net income of each company (in millions of dollars): So company A holds 71 % of its own stock, 8 % of the stock in company B , 3 % of the stock in company C .etc. For the purpose of assessing a state tax on corporate income, the taxable income of each company is defined to be its share of its own annual net income plus its share of the taxable income of each of the other companies, as determined by the percentages in the table. What is the taxable income of each company (to the nearest thousand dollars)?
Taxable income. As a result of several mergers and acquisitions, stock in four companies has been distributed among the companies. Each row of the following table gives the percentage of stock in the four companies that a particular company owns and the annual net income of each company (in millions of dollars): So company A holds 71 % of its own stock, 8 % of the stock in company B , 3 % of the stock in company C .etc. For the purpose of assessing a state tax on corporate income, the taxable income of each company is defined to be its share of its own annual net income plus its share of the taxable income of each of the other companies, as determined by the percentages in the table. What is the taxable income of each company (to the nearest thousand dollars)?
Solution Summary: The author calculates the taxable income of each company as A,B,CandD to the nearest thousand dollars.
Taxable income. As a result of several mergers and acquisitions, stock in four companies has been distributed among the companies. Each row of the following table gives the percentage of stock in the four companies that a particular company owns and the annual net income of each company (in millions of dollars):
So company
A
holds
71
%
of its own stock,
8
%
of the stock in company
B
,
3
%
of the stock in company
C
.etc. For the purpose of assessing a state tax on corporate income, the taxable income of each company is defined to be its share of its own annual net income plus its share of the taxable income of each of the other companies, as determined by the percentages in the table. What is the taxable income of each company (to the nearest thousand dollars)?
3. The income tax in a certain state is calculated as follows: 2% on the first GhC1000.00,
3% on the next GhC2000.00, 4% on the next GhC3000.00, and 5% thereafter. Find the
tax to be paid by an individual who earns an income of GhC25000.00 per month.
J. C. Penney Company, Inc. (JCP) and Macy’s, Inc. (M) are large department store chains in the United States. Information from recent annual reports for both companies is as follows (in millions):
J. C. Penney
Macy’s
Cash (end of year)
$119
$1,109
Short-term investments (end of year)
781
—
Operating expenses
4,640
8,256
Depreciation expense
616
1,061
a. Determine the days’ cash on hand for each company. Round to one decimal place.
J. C. Penney
Macy’s
Days’ Cash on Hand
fill in the blank 1 days
fill in the blank 2 days
Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s income statements through operating income for two recent years are as follows (in thousands):
Chipotle Mexican Grill, Inc.
Income Statements
For the Years Ended December 31
(in thousands)
Year 2
Year 1
Revenues
$3,904,384
$4,501,223
Expenses:
Food, beverage, packing
$(1,365,580)
$(1,503,835)
Labor
(1,105,001)
(1,045,726)
Rent (occupancy)
(293,636)
(262,412)
General and administrative
(641,953)
(514,963)
Other
(463,647)
(410,698)
Total expenses
$(3,869,817)
$(3,737,634)
Operating income
$34,567
$763,589
Required:
a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place.
Chipotle Mexican Grill, Inc.
Income Statements
For the Years Ended December 31
(in thousands)
Year 2
Year…
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