Cairo Corporation is maintaining sound financial records which showed that the EBT in 2018 was 4,750,000....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cairo Corporation is maintaining sound financial records which showed that the EBT in 2018 was 4,750,000. The expected increase in EBT in 2019 is around 16%. Cairo Corporation is operating business in economy with RRR of 14%. Thus, the delay of tax payment for 12 months is rule rather than exception. The Egyptian tax system is built around the following schedule Range of EBT Less than 100,000 100,000-200,000 200,001-500,000 500,001-1,000,000 1,000,001-3,000,000 3,000,001-5,000,000 More than 5,000,000 Tax Rate Zero 7% 8% 10% 12% 14% 16% 1. Find out the tax amount for the years 2018 and 2019 and the associated present value. 2. What is the expected gain of tax delay and its implication on total assets? 3. What would be the implication if the Egyptian Government deploys strict regulations on delay by increasing tax rate by 10% within the range? Cairo Corporation is maintaining sound financial records which showed that the EBT in 2018 was 4,750,000. The expected increase in EBT in 2019 is around 16%. Cairo Corporation is operating business in economy with RRR of 14%. Thus, the delay of tax payment for 12 months is rule rather than exception. The Egyptian tax system is built around the following schedule Range of EBT Less than 100,000 100,000-200,000 200,001-500,000 500,001-1,000,000 1,000,001-3,000,000 3,000,001-5,000,000 More than 5,000,000 Tax Rate Zero 7% 8% 10% 12% 14% 16% 1. Find out the tax amount for the years 2018 and 2019 and the associated present value. 2. What is the expected gain of tax delay and its implication on total assets? 3. What would be the implication if the Egyptian Government deploys strict regulations on delay by increasing tax rate by 10% within the range?
Expert Answer:
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
As the marketing manager for a local shopping center, you are asked to prepare a report outlining the external influences that should be considered in the situation analysis. Describe each category...
-
Consider the rocket propellant data in Exercise 11-12. Calculate the standardized residuals for these data. Does this provide any helpful information about the magnitude of the residuals?
-
To solve for the lengths of the right triangle sides, which equation is correct? A. x 2 = (2x - 2) 2 + (x + 4) 2 B. x 2 + (x + 4) 2 = (2x - 2) 2 C. x 2 = (2x - 2) 2 - (x + 4) 2 D. x 2 + (2x - 2) 2 =...
-
Spare Parts was organized on May 1, 2005, and made its first purchase of merchandise on May 3. The purchase was for 1,000 units at a price of \($10\) per unit. On May 5, Spare Parts sold 600 of the...
-
Why should managers worry about product over costing or under costing?
-
Account Title Cash Accounts Receivable Supplies Prepaid Insurance Land Equipment Accumulated Depreciation - Equipment Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Fees...
-
The shareholders equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders Equity ...............................................($ in...
-
Suppose, in a differential white blood cell count, a total of 86 white blood cells are counted, including 50 neutrophils and 30 lymphocytes. What is the percentage of neutrophils and lymphocytes in...
-
Give References in APA method and my speech topic is New technology that will change our dailylives. can you make basic speech outline of this topic as following outline. Basic Speech Outline General...
-
A 0.150-m wire oriented north between the poles of an electromagnet carries a direct current of 12.5 A. The angle between the direction of the current and that of the magnetic field is 25.0. If the...
-
Write out the power as the product of three factors of (x + y). Multiply the first two factors. (x+y)(x+y)(x + y) = ( (x+y) (Simplify your answer.)
-
During its first year of operations, Sheffield Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 40,000 shares for cash at $6 per share. July 1 Issued 69,000 shares for cash...
-
Networking has the potential to open doors and create possibilities for jobs and partnerships. Networking establishes connections between individuals and access to information that one might not...
-
1.5 The Accounting Equation and Financial Statements 15 pts. Problem and Directions: The New Life Dance Company had the following events during 2019: 1 Earned revenues of $50,000 2 Paid Cash for...
-
What do you think?
-
A firm has experienced an increasing current ratio but a decreasing operating cash flow to current liabilities ratio during the last three years. What is the likely explanation for these results?
-
Dell produces computers and related equipment on a made-to-order basis for consumers and businesses. Sun Microsystems designs and manufactures higher-end computers that function as servers and for...
-
May Department Stores (May) operates retail department store chains throughout the United States. At the end of Year 12, May reports debt of $4,658 million and common shareholders equity at book...
-
Ameritec Oil and Gas Company completes construction of an offshore oil platform and places it into service on January 1, 2015. Ameritec is legally required to dismantle and remove the platform at the...
-
Lexington Company is operating a single field in Alaska in which it has a 49% working interest. The remainder of the working interest is held by another oil company. The field went onto production in...
-
Ellis Company, a successful efforts company, has 100% of the working interest in a field in Texas. The field constitutes a cost center and is also an asset group for purposes of testing for...
Study smarter with the SolutionInn App