fegnsto nellob teegisl ort zon triompeQuestion 3In 2019, Rylan Enterprises' net income increased by $2.5 million while itsdepreciation expense decreased by $500,000, accounts receivableincreased by $2,000,000 and accounts payable increased by $1,000,000.Rylan's total corporate tax rate is 40%. How did the decline in Rylan'splacer depreciation expense impact its end-of-year cash balance?Question 4Suppose Global had an additional $1 million depreciation expense in2018. If Global's tax rate on pretax income is 26%, what would thisexpense impact Global's earnings? How would it impact Global's cashbalance at the end of the year?Tabivorqaston erit ob noitsmoin

Depreciation is a accounting method used to allocate the cost of a tangible asset over it's useful…

hellob jagiel om aan thom Question 3 In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by $1,000,000. Rylan's total corporate tax rate is 40%. How did the decline in Rylan's depreciation expense impact its end-of-year cash balance? Question 4 nego rainW Suppose Global had an additional $1 million depreciation expense in 2018. If Global's tax rate on pretax income is 26%, what would this expense impact Global's earnings? How would it impact Global's cash balance at the end of the year? CELVONG

hellob jagiel om aan thom Question 3 In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by $1,000,000. Rylan's total corporate tax rate is 40%. How did the decline in Rylan's depreciation expense impact its end-of-year cash balance? Question 4 nego rainW Suppose Global had an additional $1 million depreciation expense in 2018. If Global's tax rate on pretax income is 26%, what would this expense impact Global's earnings? How would it impact Global's cash balance at the end of the year? CELVONG

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

Vukovich Company reported pretax income of $130,000 and interest expense of $30,000 for its most recent fiscal year. What is the company's times interest earned if the tax rate is 30% ? O 1.3 times 3.8 times 4.3 times O 5.3 times Save for Later F4 Q Search % 5 F5 TG (6 F6 H & F7 7*8 11 F9 H 9 35 FIO 74 P ww H FIL I F12 Submit Answer G] www D BAC
Suppose C Manufacturings sales increase 20% over the next year. Assuming all asset accounts change proportionately to sales, there is no change in dividend or tax rate and that new growth is financed by equity, what will company be paying out in dividends for 2021? 1. $14,400 2. $12,960 3. $2,160 4. $3,600 5. $31,250
Company XYZ in previous three years (2016,17,18) has lost $1,000,000 in each year. From 2019 and 2020 it is making $ 1,500,000 per year. Please show how this situation can be compensated in these two years. 1 Show this working in table format 4 2 How much Tax saving will be enjoyed for this company due to carryforward, 3 Tax Bracket is 40%.
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)?
1 Lemon Auto Wholesalers had sales of $1,400,000 last year, and cost of goods sold represented 77 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $10,000 and interest expense for the year was $9,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto Wholesalers Income Statement $ $ $ 0 Anali 0 0 0 b-1. Assume the firm hires Ms. Carr an efficiency expert as a consultant. She suggests that by increasing selling and administrative
10. Use the following information for Chartwell Inc. assume the tax rate is 34%. 2011 2012 Sales $ 7,233 $. $ 8,085 1,085 2,942 Depreciation 1,038 COGS 2,487 Other expenses 591 515 Interest 485 579 Cash 3,972 4,041 5,892 Accounts receivable 5,021 Short-term notes payable Long-term debt Net fixed assets 732 717 12,700 15,435 31,805 33,291 Accounts payable 3,984 4,025 Inventory Dividends 8,927 9,555 882 1,011 For 2012, calculate the cash flow from assets, cash flow to creditors and cash flow to shareholders. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.
The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
24. Following are a company's income statement at the end of the last year (year 0) and coming year (year 1). Each year, the company's accounts receivable need to be main- tained at 5% of sales. The company's inventory and accounts payable do not change. Capital expenditure in year 1 is $10,000. Year Sales Depreciation EBIT Taxes (a) What is the free cash flow in year 17 1 85,000 92,000 20,000 22,000 17,000 19,500 3,500 3,700 0 (b) The company's business is mature, so it is expected to generate the same amount of free cash flow every year forever. The firm-specific discount rate is 7%, and the risk-free rate is 2%. What is the enterprise value of the company? (c) The company has $150,000 in cash and $50,000 in debt. In addition, it has 7000 shares outstanding. What is the company's stock price per share?
Pop Evil, Incorporated's, net income for the most recent year was $10, 114. The tax rate was 22 percent. The firm paid $3,455 in total interest expense and deducted $2,104 in depreciation expense. What was the cash coverage ratio for the year? Multiple Choice 6.43 times 5.36 times 6.86 times 10.36 times 5.16 times
Rappaport Corp.'s sales last year were $375,000, and its net income after taxes was $23,000. What was its profit margin on sales? Select the correct answer. a. 6.19 % b. 6.21 % c. 6.17 % d. 6.13 % e. 6.15 %
Smashed Pumpkins Company paid $208 in dividends and $631 in interest over the past year. The company increased retained earnings by $528 and had accounts payable of $702. Sales for the year were $16,580 and depreciation was $756. The tax rate was 40 percent. What was the company's EBIT? Multiple Choice $6,632 $1,511 $1,227 $1,858 $2,129
Smashed Pumpkins Co. paid $208 in dividends and $631 in interest over the past year. The company increased retained earnings by $528 and had accounts payable of $702. Sales for the year were $16,580 and depreciation was $756. The tax rate was 40 percent. What was the company's EBIT? Multiple Choice O $1,858 $2,129 O $1,511 O $6.632 O $1,227