Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134478197
Author: ZUTTER
Publisher: PEARSON
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Chapter 1, Problem 1.6P
Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2017, the firm earned $92,500 before taxes.
- a. Calculate the firm’s tax liability using the corporate tax rate schedule given in Table 1.2.
- b. How much are Tantor Supply’s 2017 after-tax earnings?
- c. What was the firm’s average tax rate, based on your findings in part a?
- d. What was the firm’s marginal tax rate, based on your findings in part a?
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Using 2017’s tax rules, Amiouny, Inc. had sales revenue of $400,000. Costs other than depreciation and interest expense were 30 percent of sales. Depreciation expense was $12,000, interest expense was $23,000, dividends received were $10,000 and dividends paid were $5,000. Which of the following statements is most FALSE? (Use the corporate tax table.)
The firm's taxable income was $248,000.
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The firm's marginal tax rate was 39 percent.
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The after-tax income was $168,030.
Use the following information for Taco Swell, Inc., (assume the tax rate is 24 percent):
2017
2018
Sales
$
15,573
$
15,336
Depreciation
1,741
1,816
Cost of goods sold
4,379
4,787
Other expenses
986
864
Interest
835
966
Cash
6,187
6,706
Accounts receivable
8,120
9,667
Short-term notes payable
1,250
1,227
Long-term debt
20,560
24,836
Net fixed assets
51,064
54,513
Accounts payable
4,512
4,884
Inventory
14,419
15,368
Dividends
1,350
1,698
Prepare a balance sheet for this company for 2017 and 2018. (Do not round intermediate calculations.)
Prepare an income statement for this company for 2017 and 2018. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Input all answers as positive values.)
Chapter 1 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Ch. 1.1 - What is the goal of the firm and, therefore, of...Ch. 1.1 - For what three main reasons is profit maximization...Ch. 1.1 - What is risk? Why must financial managers consider...Ch. 1.1 - Is maximizing shareholder wealth inconsistent with...Ch. 1.2 - What are the main types of decisions that...Ch. 1.2 - Prob. 1.6RQCh. 1.2 - Prob. 1.7RQCh. 1.2 - What are the major differences between accounting...Ch. 1.2 - Prob. 1.9RQCh. 1.3 - Prob. 1.10RQ
Ch. 1.3 - Prob. 1.11RQCh. 1.3 - What does it mean to say that corporations face a...Ch. 1.3 - Prob. 1.13RQCh. 1.3 - Prob. 1.14RQCh. 1.3 - Prob. 1.15RQCh. 1 - Learning Goal 4 ST1-1 Emphasis on Cash Flows...Ch. 1 - Prob. 1.1WUECh. 1 - Prob. 1.2WUECh. 1 - Learning Goal 4 E1-3 The end-of-year parties at...Ch. 1 - You have been made treasurer for a day at AIMCO,...Ch. 1 - Recently, some branches of Donut Shop, Inc., have...Ch. 1 - Ross Company, a manufacturer of pharmaceuticals,...Ch. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Cash flows It is typical for Jane to plan,...Ch. 1 - Marginal cost-benefit analysis and the goal of the...Ch. 1 - Identifying agency problems, costs, and...Ch. 1 - Corporate taxes Tantor Supply, Inc., is a small...Ch. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Interest versus dividend expense Michaels...Ch. 1 - Hemingway Corporation is considering expanding its...Ch. 1 - Prob. 1.12PCh. 1 - Prob. 1SE
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