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2-8 The Wendt Company had $12. 5 mil of taxable income, a) What is you can actually federal income tax bill for the year? Answer: $3, 575, 000

60, 000*. 15=7500

(75000-50000)*. 25=6250

(100000-75000)*. 34=8500

(335000-100000)*. 39=91650

(10000000-335000)*. 34=3286100

(10500000-10000000)*. 35=175000

b) Assume the firm receives yet another $1 milion of interest profits from some bonds this owns. Precisely what is the duty on this fascination income? Response: Tax on just the extra million taxed as regular income is: $340, 000 50, 000*. 15=7500

(75000-50000)*. 25=6250

(100000-75000)*. 34=8500

(335000-100000)*. 39=91650

(1000000-335000)*. 34=226100

Duty on the first 10500000+interest profits 1000000: $3, 925, 000 50, 000*. 15=7500

(75000-50000)*. 25=6250

(100000-75000)*. 34=8500

(335000-100000)*. 39=91650

(10000000-335000)*. 34=3286100

(11500000-10000000)*. 35=525000

c) Now imagine Wendt will not receive the curiosity income but does get an additional $1 million as payouts on a few stock it owns. What is the tax on this dividend income? 1000000*. 30=300000 is taxable

Taxed by itself: $100, two hundred and fifty

50, 000*. 15=7500

(75000-50000)*. 25=6250

(100000-75000)*. 34=8500

(300000-100000)*. 39=78000

Taxed as part of complete income: $3, 680, 500

50, 000*. 15=7500

(75000-50000)*. 25=6250

(100000-75000)*. 34=8500

(335000-100000)*. 39=91650

(10800000-10000000)*. 35=280000

3-6 Gardial and Sons includes a ROA(return in assets) of 12%, a 5% revenue margin and a return on equity equal(ROE) to twenty percent. a) Precisely what is the company's total assets yield?

ROA= (Profit Margin) (Total asset turnover)

12=5(Total Asset Turnover)

12/5=2. 4= Total Property Turnover

b) What is the firm's equity multiplier?

ROE= ROA by Equity Multiplier

20=12 (Equity Multiplier)

20/12= 1 . 7 = Value Multiplier

3-11 Complete the total amount sheet and sales info in the stand that follows pertaining to J. White colored industries making use of the following economical data: Total asset yield: 1 . 5=revenue/total assets

Major profit perimeter on sales: (sales-cost great sold)/sales = 25% Total liabilities-to-assets percentage: 40%

Quick Ratio: 0. 80

Times sales exceptional (based about 365-day year): 36. five days

Inventory turnover ratio: 3. 75 Partial income

Statement info

Sales

$600, 000

Cost of good marketed

$450, 000

Balance sheet

Money

$28, 1000

Accounts payable

$110, 000

Accounts receivable

$60, 000

Long term debts

$50, 000

Inventories

$120, 000

Common stock

$140, 000

Set assets

$192, 000

Stored earnings

$100, 000

Total assets

$400, 000

Total liabilities and equity

$400, 000

The formula intended for Asset Yield is Revenue / Total Assets.

Total Property = $400, 000. Because the Asset Yield rate is usually 1 . 5, Revenue sama dengan ($400, 500 X 1 . 5) $600, 000

The formula for Debts Ratio is Total Financial obligations / Total Assets. Total Assets = $400, 500. Since the Financial debt Ratio operating-system 0. 40, Total Financial obligations = ($400, 000 Times. 40) $160, 000

Since Total Liabilities = $160, 000 and the just two responsibility accounts are Accounts Payable (the harmony of which is unknown) and Long Term Personal debt of 50 dollars, 000, you may solve intended for Accounts Payable.

Accounts payable sama dengan ($160, 500 - 50 dollars, 000) $110, 000

Days Sales Outstanding sama dengan 36. your five days. The formula for the is Accounts Receivable Equilibrium / Product sales X 365

Seeing that DSO = 36. a few, then Accounts Receivable sama dengan 10% from the Sales. 10% of $600, 000 = $60, 000

Major Profit Margin is 25%. Therefore Costs of Goods Distributed = (. 75 Times $600, 000) $450, 500

The formula intended for Quick Proportion = (Cash + Accounts Receivable) as well as Current Liabilities. Since the ratio =. 85, you use this to estimate the total amount of cash and A/R. Since you might have previously determined that current liabilities sama dengan $110, 500, the total of cash and A/R = ($110, 000 Times. 80) $88, 000

Since you realize that A/R = $60, 000, then Money = ($88, 000 -- $60, 000) $28, 000

Since the Inventory Yield Ratio is 3. seventy five, the products on hand balance = ($450, 1000 / several. 75) $120, 000...