3 A company Gross profit after all expenses is 2,00,000 The company has 3 directors with a salary of 6,000 each There are 3 shareholders with a Dividend of 25000 each Tax Rate 25% Calculate Corporate Tax and Retained earnings of the company for the vear

3 A company Gross profit after all expenses is 2,00,000 The company has 3 directors with a salary of 6,000 each There are 3 shareholders with a Dividend of 25000 each Tax Rate 25% Calculate Corporate Tax and Retained earnings of the company for the vear

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: e net income for Year 1 (the first year of operations for the company) was $20,100 and dividends of…

A: Retained earnings = Net income - Dividends paid

Q: 3 - Profit for the Period 440.000 Corporate Tax (96,800) Net Profit for the Period After Taxes…

A: The answer is option (B.) [i.e 35,000] Refer step 2 for explana tion.

Q: 8. Lina Co. has net income of $10,000 and common equity of $100,000. The ROE ratio for the company…

A: ROE = net income / Equity

Q: ) Return on capital employed of the company is 2.50. 2) Current ratio of the company is 3.97, 3)…

A: Ratios refer to determining the relationship between two variables. In accounting, ratios are used…

Q: The profit made by a business in 20X2 was $35,400. The proprietor injected new capital of $10,200…

A: Capital is the money invested in the business by the entrepreneur which gives him the right to take…

Q: (Related to Checkpoint 4.3) (Profitability analysis) Last year the P. M. Postem Corporation had…

A: Tax 35% Sales $4,01,000.00 Cost of Goods Sold $1,13,000.00 Operating Expenses $1,26,000.00

Q: Problem 9-13 Two firms have sales of $0.9 million each. Other financial information is as follows:…

A: 1)Calculation of the operating profit margins and the net profit margins for these two firms as…

Q: 3.5 Andre's Bakery has sales of $100,000 with costs of $50,000. Interest expense is $20,000 and…

A: Sales = $100,000 less, Cost = $50,000…

Q: Dividend income from a Resident Corporation 2,600 Cost of sales 65,000 Business Expenses 156,000…

A: The taxable income is the income at which the tax is calculated. The taxable income is calculated by…

Q: The following extracts of the financial statements of Wiggo have been obtained: $980,000 ($530,000)…

A: We have the following information: Revenue: $980,000 Cost of sales: ($530,000) Operating…

Q: Calculate the accounting profit and economic profit for each of the following firms (amounts are in…

A: Formula: Accounting profit = Total Revenue - Total cost. Deduction of total cost from revenues…

Q: (Related to Checkpoint 4.3) (Profitability analysis) Last year the P. M. Postem Corporation had…

A: Solution:- Income statement is a part of financial statements which shows the profitability of the…

Q: nswer in 10 minutes please Vince Company invested P2,000,000 in Alfred Company for 25% interest.…

A: Solution Given Initial cost…

Q: Thai Company was formed on January 1, 20X1. The company's accountant prepared the following income…

A: Data given: Net income for the year ending December 31, 20X1=$42000 Cash as at December 31, 20X1= $…

Q: 5. X Company started the year with total ssets of $540,000 and total liabilities of 360,000. During…

A: The total equity represents the capital of the entity or the owner's fund invested in the…

Q: EXAMPLE 4: The capital employed in a business has been financed, as below: Equity Share Capital OMR…

A: Return on Capital employed shows the total of earnings that a firm generate from its invested…

Q: Q R and S carry on business sharing the profits in the ratio of 23: 4 respectively. Capitals as on…

A: Average profits of last years means on an average how much profit is getting earned in every year.…

Q: 14. PRENTICE A LEARNER Co. reported profit after tax of ₱210,000. PRENTICE’s income tax rate is 30%.…

A: Net income after taxes is indeed a monetary term used to depict an organization's benefit after all…

Q: At December 31 a company's records show the following information $ 10,000 30,000 80,000 6,000…

A: Inventory and Prepaid insurance are parts of the current assets, but it is not part of the quick…

Q: 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in…

A: Return on Equity is one of the profitability ratio which shows how much net income is being earned…

Q: 29. Retained earnings balance of ABC Corp. at the beginning of the year is P5,000,000. During the…

A: Retained earnings are the free reserves of an entity. Residual net income of an entity are…

Q: dvertising and Promotion Expenses ncome Tax Expense $ 264,300 56,680 44,080 nterest Expense cher…

A: The income statement is prepared to know about the profitability of the business The net income is…

Q: Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest…

A: Average Operating assets :— It is the average amount of assets used in the operation of business.…

Q: Lame Corporation generated a 1.20 total asset turnover in its total assets of P2,000,000. The…

A: Sales = Total assets x Asset turnover = P2,000,000 x 1.2 = P2,400,000 Profit = Sales x Profit…

Q: A business has $250,000 income and $60,000 expenses. What is the net profit? Select one: a. 310,000…

A: Net profit means the difference between the income and expenses.

Q: QUESTION 15 During the year, Proffitts, Inc., had revenue of $83,000 and expenses of $26,000. During…

A: Revenue = $83000 Expenses = $26000

Q: Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses…

A: Note: I am suppose to give solution of first question. Please repost the remaining question…

Q: Problem 9-13 Two firms have sales of $1 million each. Other financial information is as follows:…

A: A B EBIT 220,000 220,000 Interest expense 40,000 60,000 Income tax 60,000…

Q: Prepare a single-step income statement with basic earnings per share disclosure

A: Income statement: It is a financial statement prepared by a company that reports revenues and…

Q: . Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00…

A: Solution:- 1)Calculation of Economic value added as follows under:- Economic value added gives true…

Q: ABC company has EBIT of $1,200. The company has capital of $3,100. The WACC of the company is 10%.…

A: EVA is also called as economic value added. It is the financial performance measure. Given: EBIT =…

Q: Meldy Corporation had the following items of income and expenses during the year: Gross receipts…

A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…

Q: Word problem: During its first year of operations, Mario Lupo formed Lupo Company as a corporation…

A: Equity: It implies to the net assets available with the business that is owned and controlled by it,…

Q: Q. question 5

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: Following information is from first month of operations. Make a Mulit Step Income Statement 1/1 Ray…

A: Financial statements consists of the following:- Statement of Financial position; Income Statement;…

Q: 16. Stefan Page Company reports net sales of $800,000, gross profit of $370,000, and net income of…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1. Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of…

A: Common stock: It implies to the security that represents the ownership stake of a shareholder in the…

Q: 2-13 Wiley's Wilderness pays 6 percent interest on its outstanding debt, which equals $200,000. The…

A: The times interest earned ratio is used to measure the firm's ability to honor its debt obligations.…

Q: b) The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense…

A: Net income = (EBIT - interest) x (1 - tax rate)EBIT = $ 750,000As compnay is 100% equity finance,…

Q: 24. Given the following information. What will be the net income P 4,000,000 1,800,000 36,000…

A: Taxable Net Income: In order to arrive at net taxable income for a given financial year, a person…

Q: Jensen Company had beginning Retained Earnings of $180,000 and Common Stock of $42,000. Jensen…

A: Ending retained earnings = Beginning retained earnings + Revenue - expenses - Dividend paid

Q: 2. Blue Inc. has the following transactions for the month of April: Fees earned in cash $640,000…

A: Here, Fees Earned in Cash is $640,000 Expenses Paid is $300,000 Dividends Paid is $50,000

Question

3 A company Gross profit after all expenses is 2,00,000
The company has 3 directors with a salary of 6,000 each
There are 3 shareholders with a Dividend of 25000 each
Tax Rate 25%
Calculate Corporate Tax and Retained earnings of the company for the year.

2 Define Tax Evasion point out differences between Tax Avoidance and Tax
Evasion
2 00 000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys after-tax income? A. $300,000 B. $240,000 C. $48,000 D. $72,000
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?
ABC Inc. has reported the following financial information for the year: . d. • Operating Expenses: $300,000 Interest Expense: $50,000 Tax Rate: 25% Calculate the company's Net Income and Earnings Per Share (EPS). . a. . b. Sales: $1,000,000 Cost of Goods Sold: $400,000 Gross Profit: $600,000 C Net Income: $250,000, EPS: $6.25 Net Income: $150,000, EPS: $3.75 Net Income: $100,000, EPS: $2.50 Net Income: $200,000, EPS: $5.00 5 Ultim
Meldy Corporation had the following items of income and expenses during the year: Gross receipts P 1,000,000 Cost of services 850,000 Dividends from a domestic company 35,000 General and administrative expenses 120,000 The income tax due on Meldy Corporation is A. 10,500 B. 9,000 C. 30,000 D. 3,000
Your company's income statement for the year ended 30 September 20X8 showed the following: $'000 Net profit before interest and tax 1,200 Interest 200 1,000 Corporation tax 400 Retained profit for the year 600 Its statement of financial position at 30 September 20X7 showed the following capital: $'000 Share capital 8,000 Retained profits balance 1,200 9,200 10% loan stocks 2,000 11,200 Return on average capital employed for the year ended 30 September 20X8 is A 5.88% B 10.17% C 10.43% D none of these
The capital of a company is made up of $40,000 ordinary shares, $45,000 preference shares, $35,000 debentures, and $40,000 reserves. During the year, it makes a profit of $6,000 after all interest totaling $1.200 has been subtracted, but before tax is taken out. The return on capital employed for this company is: O a. 5.3% O b. 4.3 % Oc 4.5 % O d. 5.5%
The Paulson Company's year-end balance sheet is shown below Its cost of common ty is 10%, ts before-tax cast of debt is 11%, and to marginal tax rate 2% that the fo term debt and long-term debt, equals $1,142. The firm has 576 shares of common stock outstanding that s Assets Cash Accounts receivable Inventories Plant and equipment, net Total assets $ 120 340 360 2,160 $2,000 Liabities And Equity Accounts payable and accruals Short-term debt Long-term debt Common equity $ 10 42 1,100 1,728 Totals and equ $3,000 Calculate Paulson's WACC using market value weights. Do not und intermediate calculations Round your answer to two decal places
3 A & E Holdings' profit and loss statement showed a net income of 9-% of revenue or $29,250. Twenty percent of net income was paid in corporation tax and 75% of the net income after-tax was paid out as dividends to Alice and Emile, who share in the ratio 5 to 3. (a) What was the revenue of A & E Holdings? (b) How much was the after-tax income? (c) How much was paid out in dividends? (d) What percent of net income did Alice receive as a dividend? ..... (a) The revenue of A & E Holdings was $ (Simplify your answer.)
Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000 What is the percentage increase in sales from the preceding year to the current year? Oa. 125% Ob. 25% Oc. 75% Od. 100%
The balance sheet of ATLF, Inc. reports total assets of $1,950,000 and $2,050,000 at the beginning and end of the year, respectively. Net income and sales for the year are $150,000 and $1,000,000, respectively. What is ATLF's profit margin? Select one: a. 10% Ob. 8% O c. 7.5% O d. 15% e. 12%
Berry Corporation reports the following information. Year 7 Year 6 Cash $14,364 $13,041 5,535 2,970 Net operating working capital Net long-term operating assets 8,424 8,370 Net nonoperating obligations 2,430 1,890 Net operating profit after tax 1,755 1,458 Weighted average cost of capital 7% 7% What is the company's residual operating income (ROPI) for Year 7? Select one: a. $1,636 * b. $961 c. None of these are correct d. $750 e. $1,037