1. Using the tax tables in the textbook (table 2.3) as shown below, please calculate the total tax, the average tax rate, and the marginal tax rate for a company with $7,650,000 taxable income. (Taxes)
Taxablw income Tax rate
$ 0- 50,0000 25 %
50,0000-75000 24
75000- 100000 39
100000- 335000 33
335001- 10,000,000 35
15,000,001 - 18.,333,333 38
18.333.324 + 35
2. During the year, Belyk Paving Co. had sales of $3,350,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,295,000, $530,000, and $420,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) (Operating Cash Flow – OCF)
What is the company's net income?
What is its operating cash flow?
If the company pays dividend of 200,000, what would the company’s net income and its operating cash flow be?