GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter S, Problem 3P
Computing Effective Tax Rates
LOS-4 Below is Columbia Sportwear’s 2012 income statement. What is Columbia’s effective tax rate?
| COLUMBIA SPORTSWEAR COMPANY Consolidated Statements of Operations (in thousands, except per share amounts) |
|||
| 2012 | Year Ended December 31 2011 | 2010 | |
| Net sales | $1,669,563 | $1.693,985 | $1,483,524 |
| Cost of sales | 953,169 | 958,677 | 854,120 |
| Gross profit | 716,394 | 735,308 | 629,404 |
| Selling, general, and administrative expenses | 596,635 | 614,658 | 534,068 |
| Net licensing income | 13,769 | 15,756 | 7,991 |
| Income from operations | 133,528 | 136,406 | 103,327 |
| Interest income, net | 379 | 1,274 | 1,564 |
| Income before income tax | 133,907 | 137,680 | 104,891 |
| Income tax expense (Note 10) | (34,048) | (34,201) | (27,854) |
| Net income | $99,859 | $103,479 | $77,037 |
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Compute NOPAT
Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Companies Inc. Assume the statutory tax rate is 22%.
Company ($ millions) Ticker Sales NOPBT
HD $108,203 $15,530
Home Depot
Lowe's
LOW
71,309 4,018
a. Compute the following measures for both companies.
1. NOPAT
Company
Home Depot $
Lowe's
$
Home Depot $
Lowe's
$
3. NOPM
NOPAT
2. RNOA
Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA.
Company
Denominator
RNOA
Numerator
Tax on operating profit
4. NOAT
NOPAT
Home Depot $
Lowe's
$
0 x
0 x
Pretax Net
Nonoperating Tax
Expense Expense
$974 $3,435
624
1,080
Home Depot $
Lowe's
$
Numerator
Net income
♦ Average NOA
0 x $
0 x $
Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute NOPM.
Company…
Calculate the net income after corporate income
tax is paid for Quarter 1 from the following income
statement. Use a corporate income tax rate of 21%.
Q1 (x1000)
Q2(x1000)
Net Sales
115
125
COGS
(30)
(31)
Gross Profit
85
94
Overhead
(32)
(41)
Pre-tax Income 53
53
Net Income = $[?]
Multiply your result by 1000 before entering.
For example: 1.23 (x1000) = $1,230.
%3D
Enter
Copyright 2003 - 2021 Acellus Corporation. All Rights Reserved,
A CMA performs a horizontal analysis on Jones Co’s historical data. Her results are shown below (in millions):
Year 1
Year 2
Year 3
Year 4
Sales
250
275
280
285
Earnings Before Taxes
175
185
195
205
Tax Rate
35%
35%
35%
20%
What is the percentage increase in net income from Year 1 to Year 3?
Question options:
23.3%
11.4%
46.7%
55.9%
Chapter S Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. S - Defining a Lessor Which of the following best...Ch. S - Prob. 2MCQCh. S - Prob. 3MCQCh. S - Prob. 4MCQCh. S - Prob. 5MCQCh. S - Prob. 6MCQCh. S - Prob. 1MECh. S - Prob. 2MECh. S - Prob. 3MECh. S - Prob. 4ME
Ch. S - Prob. 1ECh. S - Prob. 2ECh. S - Prob. 3ECh. S - Prob. 4ECh. S - Calculating a Deferred Tax Liability LOS-5 On...Ch. S - Prob. 6ECh. S - Prob. 7ECh. S - Prob. 8ECh. S - Prob. 9ECh. S - Prob. 10ECh. S - Converting Operating Leases to Capital Leases...Ch. S - Converting Operating Leases to Capital Leases...Ch. S - Computing Effective Tax Rates LOS-4 Below is...Ch. S - Prob. 4PCh. S - Prob. 5PCh. S - Prob. 6PCh. S - Analyzing Starbuckss Lease Disclosures The...Ch. S - Analyzing Disneys Income Tax Disclosures The...
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