During the year, Belyk Paving Co. had sales of $2,600,000. Cost of goods sold,administrative and selling expenses, and depreciation expense were $1,535,000,$465,000, and $520,000, respectively. In addition, the company had an interestexpense of $245,000 and a tax rate of 35 percent. (Ignore any tax loss carryback orcarryforward provisions.) (Enter your answer as directed, but do not roundintermediate calculations.)Required:(a) What is Belyk's net income? (Negative amount should be indicated by a minussign.)Net income(b) What is Belyk's operating cash flow?Operating cash flowA

Calculate the net income as follows:

Answered: During the year, Belyk Paving Co. had…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 1P

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Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
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.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year. It had 100,000 in pre-tax earnings last year before using the past operating losses and has 300,000 in the current year before using any past operating losses. It projects 350,000 pre-tax earnings next year. a. How much taxable income was there last year? How much, if any, cumulative losses remained at the end of the last year? b. What is the taxable income in the current year? How much, if any, cumulative losses remain at the end of the current year? c. What is the projected taxable income for next year? How much, if any, cumulative losses are projected to remain at the end of next year?
Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the companys controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?
During the year, Belyk Paving Co. had sales of $2,380,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,320,000, $605,000, and $441,000, respectively. In addition, the company had an interest expense of $266,000 and a tax rate of 22 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) What is the net income? What is its operating cash flow?
Toodles Inc. had sales of $1,840,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,180,000, $185,000 and $365,000 respectively. In addition, the company had an interest expense of $280,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carry forward provisions.) What was Toodles’s OCF?

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