UNIT 1: TEXTBOOK PROBLEMS | ||||||||

CHAPTER 2: PROBLEM 1 | ||||||||

Current Assets | $7,300 | |||||||

Net Fixed Assets | $26,200 | |||||||

Current Liabilities | $5,700 | |||||||

Long-Term Debt | $12,900 | |||||||

Shareholder Equity = | ||||||||

Net Working Capital = | ||||||||

CHAPTER 2: PROBLEM 2 | ||||||||

Income Statement | ||||||||

Sales | $675,300 | |||||||

Costs | $297,800 | |||||||

Depreciation Expense | $45,100 | |||||||

EBIT | ||||||||

Interest Expense | $20,700 | |||||||

EBT | ||||||||

Taxes @ 35% | ||||||||

Net Income = | ||||||||

Cash Dividends | $62,000 | |||||||

Addition to Retained Earnings = | ||||||||

Tax Rate = | 35% | |||||||

CHAPTER 2: PROBLEM 4 | ||||||||

Taxable Income | $315,000 | |||||||

Table 2.3 | ||||||||

Taxable Income | Taxable Income (cont) | Tax Rate | ||||||

0 | 50,000 | 15% | ||||||

50,001 | 75,000 | 25% | ||||||

75,001 | 100,000 | 34% | ||||||

100,001 | 335,000 | 39% | ||||||

335,001 | 10,000,000 | 34% | ||||||

10,000,001 | 15,000,000 | 35% | ||||||

15,000,001 | 18,333,333 | 38% | ||||||

18,333,334 | + | 35% | ||||||

Income Taxes = | ||||||||

Average Tax Rate = | ||||||||

Marginal Tax Rate = | (Note: No formula needed. Just input the correct rate from the Tax Rate column.) | |||||||

CHAPTER 2: PROBLEM 5 | ||||||||

Sales | $29,200 | |||||||

Costs | $10,400 | |||||||

Depreciation Expense | $1,800 | |||||||

EBIT | ||||||||

Interest Expense | $1,050 | |||||||

EBT | ||||||||

Taxes @ 40% | ||||||||

Net Income | ||||||||

Tax Rate | 40% | |||||||

Operating Cash Flow = | ||||||||

CHAPTER 3: PROBLEM 2 | ||||||||

Debt/Equity Ratio | 0.65 | |||||||

Return on Assets | 9.80% | |||||||

Total Equity | $850,000 | |||||||

Equity Multiplier = | ||||||||

Return on Equity = | ||||||||

Net Income = | ||||||||

CHAPTER 3: PROBLEM 6 | ||||||||

ROE | 16% | |||||||

Payout Ratio | 25% | |||||||

Retention Ratio | (Note: You must calculate the retention ratio first then the sustainable growth rate.) | |||||||

Sustainable Growth Rate = | ||||||||

Subject | Business |

Due By (Pacific Time) | 10/18/2015 01:00 pm |

Tutor | Rating |
---|---|

pallavi Chat Now! |
out of 1971 reviews More.. |

amosmm Chat Now! |
out of 766 reviews More.. |

PhyzKyd Chat Now! |
out of 1164 reviews More.. |

rajdeep77 Chat Now! |
out of 721 reviews More.. |

sctys Chat Now! |
out of 1600 reviews More.. |

sharadgreen Chat Now! |
out of 770 reviews More.. |

topnotcher Chat Now! |
out of 766 reviews More.. |

XXXIAO Chat Now! |
out of 680 reviews More.. |