1. (CORPORATE INCOME TAX) Meyer Inc. has taxable income (Earnings before taxes) of $300,000. Calculate Meyer's federal income tax liability using the tax table.
Taxable Income
$0-$50,000
$50,001-$75,000
$75,001-$100,000
$100,001-$335,000
$335,001-$10,000,000
$10,000,000-$15,000,000
$15,000,001-$18,333,333
Over-$18,333,333
Marginal Tax Rate
15%
25%
34%
39%
34%
35%
38%
35%
What are the firm's average and marginal tax rates?
The firm's tax liability for the year is? Round to the nearest dollar.
The caraway seed company grows heirloom tomatoes and sells their seeds. The heirloom tomato plans are preferred by many growers for their superior flavor at the end of the most recent year the firm had current assets of $50,000, net fixed assets of $250,000 current liabilities of $30,000 and long-term debt of $100,000
A-Calculate caraway's stockholders equity
B-What is the firm's net working capital?
C-If caraway's current liabilities consist of $50,000 in accounts payable and $10,000 in short-term debt (notes payable) What is the firm's net working capital?
Caraway's stockholders equity is? Round to the nearest dollar.
A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is found below.
Inventory - $6,470
Common Stock - $45,100
Cash - $16,510
Operating Expenses - $1,340
Short-Term Notes Payable - $550
Interest Expense - $910
Depreciation Expense - $460
Sales - $12,870
Accounts Receivable - $9,590
Account Payable - $4,810
Long -Term Debt - $55,140
Cost of Goods Sold - $5,710
Buildings and Equipment - $122,280
Accumulated Depreciation - $33,650
Taxes - $1,410
General and Administrative Expense - $830
Retained Earnings?
A-How much is the firm's net working capital?
B-Complete an Income Statement and a Balance Sheet for Belmond
C-If you were asked to respond to parts (A) and (B) as part of a training exercise, what could you tell your boss about the company's financial condition based on your answer?
A-How much is the firm's net working capital? The firm's net working capital is? Round to the nearest dollar.
4-(Analyzing the quality of firm earnings)
Kabutell, Inc. had net income of $750,000, cash flow from financing activities of $50,000, depreciation expenses of $50,000, and cash flow from operating activities of $575,000.
A-Calculate the quality of earnings ratio what does this ratio tell you?
B-Kabutell, Inc. reported the following in its annual reports for 2011-2013
($ Million) 2011- 2012- 2013
Cash Flow from Operation - $478 in 2011, $403 in 2012, $470 in 2013.
Capital Expenditures (Capex) $459 in 2011, $447 in 2012, $456 in 2013.
Calculate the average capital acquisitions ratio over the three year period. How would you interpret these results?
A-What is Kabutell's quality of earnings ratio? % round to one decimal place.