Duval Manufacturing recently reported the following information:Net income $600,000ROA 8%Interest expense $225,000Duval’s tax rate is 35%. What is its basic earning power (BEP)?

Q: Ever Manufacturers had sales of $900,000 in 2006 and their cost of goods sold represented 65 percent…

A: Given, Sales =$900,000 COGS =65% of sales = $900,000*65% = $585,000 Selling and Administrative…

Q: Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding…

A: Computation:

Q: Little Books, Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax…

A: Calculation of interest expenses:Given, tax rate is 40% then, Net income will be 60%Net income is…

Q: MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: Formula: TIE ratio=EBITInterest expense

Q: Bryon Inc recently reported $6million of net income. Its EBIT was $13.2 million, and its tax rate…

A: The mathematical equation of the concept used is:

Q: A company buys 2mm items for $3 each and sells 1mm of those items during a year for $6 each.…

A: EBITDA: EBITDA is an acronym of earnings before interest, taxes, depreciation, and amortisation, is…

Q: Suppose Ningbo Steel has sales revenue of $11,000 sales revenue, cost of goods sold off $5000,…

A: Given information : sales revenue = $11,000 cost of goods sold = $5000 operating expenses = $1000…

Q: 6. Sheryl's Shipping had sales last year of $13,000. The cost of goods sold was $7,100, general and…

A: Earnings before interest and taxes are the earnings that company has earned after receiving the…

Q: SOP Corporation furnished you with the following information: Net income after taxes P18,000 Income…

A: The Formula is; Times Interest earned = EBIT / Interest expense Division of interest expense with…

Q: 2. Sohar Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the…

A: Income tax is a liability of every individual toupee to the government based on their taxable…

Q: A firm had gross profits from sales in the amountof $180,000, operating expenses of $90,000,and…

A: Net Income is defined as the aggregate amount of money that the business earned in the time period,…

Q: Compute the income after income tax given the following: Net Sales of 100,00,00.00; Marketing…

A: Given Information: Net Sales = 100,000,000 Marketing Expense = 5,000,000 Tax Rate = 30% Income after…

Q: Little bugs incorporation recently reported 3 million of net income as earnings before interest text…

A: Net Income = $3,000,000Earnings before Interest and Tax = $6,000,000Tax Rate = 40% or 0.40…

Q: Momo’s Candy Inc.’s earnings before interest and taxes (EBIT) was $12 million. Assuming Momo’s…

A: NOPAT is calculated as EBIT less taxes on EBIT

Q: The following financial information was provided by Anya Company: Net Income      8,255,000.00…

A: Net profit margin depends on sales and net income and all these are quite interrelated to each…

Q: Oakdale Fashions, Inc.’s, 2021 income statement is reported below.       Oakdale Fashions, Inc.,…

A: Tax liability = EBT (Earning before tax) x Tax rate Tax liability, 2021 = $165,000 x 21% = $34,650…

Q: Bed Bug Inn has annual sales of $137,000. Earnings before interest and taxes are equal to 5.8…

A: We know that the formula to calculate the profit margin is  Profit Margin = (Net Income/Sales) * 100…

Q: Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP)…

A: A ratio that provides information about the company regarding the capability of payoff its debt…

Q: . If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is…

A: Profit margin ratio is the profitability ratio which shows ratio of net income with net sales in the…

Q: A firm reported the following income statement (all figures are in thousands of dollars):   Net…

A: Tax is charged on the net earnings after deduction of all operating and finance costs. EBT or…

Q: Byron Books Inc. recently reported $13 million of net income. Its EBIT was $22.1 million, and its…

A: Step 1 Earnings before interest and taxes  (EBIT) is an indicator of a company's profitability which…

Q: In the quarter ended 31 March 20X2, C had sales taxable outputs, net of sales tax, of $90,000 and…

A: When the sales exceeds the purchase, the excess sales tax is payable. Sales tax due can be…

Q: total sales of $340,000. And a net income after tax of $47,600. Calculate the operating margin if…

A: To calculate the operating margin we need to calculate the operating income.Operating Income is an…

Q: Humphrey Hotels' operating income (EBIT) is $40 million. The company's times interest earned (TIE)…

A: Given:  EBIT  $40 million Times interest earned(TIE) 8 times Tax rate  40% Basic Earning…

Q: You have the following data: The net income after tax is 42000 OMR and ncome tax is 3000 OMR and…

A: The gross profit is the difference between sales and cost of goods sold. Further net income is…

Q: BTS Co. reported profit after tax of ₱420,000. BT21’s income tax rate is 30%. Operating expenses for…

A: Solution: Profit after tax = P420,000 Profit before tax  =PAT / (1-tax rate) = P420,000 / (1-0.30) =…

Q: Santos Company had a 40 percent tax rate. Given the following pre-tax 21) amounts, what would be the…

A: Income tax is charged on the net income of the business. The net income is the Excess of revenue…

Q: MPI Incorporated has $3 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: BEP ratio=EBITTotal Assets0.13=EBIT$3 billionEBIT=$3 billion×0.13EBIT=$0.39 billion   ROA=Net…

Q: The annual sales of a company are $235,000 including sales tax at 17.5%. Half of the sales are on…

A: We have the following information: Annual Sales: $235,000 Annual sales includes a sales tax of…

Q: A company wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the…

A: Formula: Net income after taxes = Pretax income - Tax amount.

Q: Hydroflask reported profit after tax of ₱42,000. Hydro’s income tax rate is 30%. Operating expenses…

A: Profit before tax =  profit after tax / (1 - tax rate) = ₱42,000 / (1 - 0.30) = ₱60,000

Q: Local Co. has sales of $10.9 million and cost of sales of $5.9 million. Its selling, general and…

A: Prepare the income statement by the given information as per the following matrix: The gross profit…

Q: Rose inc. had sales of $7 million during the past year. The cost of goods sold amounted to $4…

A: Cost of goods sold exhibits direct cost incurred by company for producing goods and services.

Q: Genie Company has operating income after taxes of P50,000. It has P200,000 of equity capital, which…

A: Economic value added is value addition in something, It is a measure of the financial instruments of…

Q: What would be a company's "timesInterest earned ratio if interest paid on loans amount to P9.000 and…

A: Times Interest Earned Ratio=Net Income before interest and taxInterest Expense

Q: he Johnson's Company had net income(after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times Interest Earned:- It is a ratio that helps in calculating the debt-paying capacity of a…

Q: times-interest-earned ratio

A: Times interest earned ratio = Earnings before interest and taxes/Interest expense

Q: Casey Motors recently reported the following information: Net income = $750,000. Tax rate = 40%. %3D…

A: EVA = NOPAT - (WACC* Capital Invested)

Q: MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: To determine times-interest-earned (TIE) ratio, following formula will be used:

Q: Cedric Corp has a current ratio of 3:1. The minimum desired ratio is 5:1. At present, the net…

A: The current ratio is determined by dividing the current assets by the current liabilities. The net…

Q: The income statement for Northeast Co. is shown below. How much is net operating profit after taxes…

A: The net income of the company refers to the excess of revenues of the company over the costs that…

Q: 2. Sohar Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the…

A: The Revenue and expenses of  company are given Required   What would be the income tax expense…

Q: RJS generated $78,000 net income this year. The firm's financial statements also show that its…

A: Net income = $ 78,000 Interest expenses = $ 40,000 Tax rate = 35% NOPAT = Net income+[Interest…

Q: Your firm has total sales of $10,508. Costs are $6,062, depreciation expense is $1,188, and the…

A: Net profit margin = Net profit / Sales where, Net profit = Total sales - costs - depreciation…

Q: Holly Farms has sales of S509,600, costs of $448,150, depreciation expense of $36,100, and interest…

A: Here, Sales is $509,600 Costs is $448,150 Depreciation Expense is $36,100 Interest Paid is $12,400…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.