1) Builtrite had sales of $900,000 and COGS of $280,000. In addition, operating expenses were calculated at 30% of sales. Builtrite also received dividends of $60,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $50,000 was realized during the year along with a capital loss of $80,000

2)Builtrite has taxable income of $295,000.

Based on their taxable income, what is Builtrites tax liability?

3)Continuing with Builtrite had taxable income of $295,000.

If we add to our problem that Builtrite also had $20,000 in interest expense, how much would this interest expense cost Builtrite after taxes?

4)On Builtrite's balance sheet for the previous year, retained earnings equaled $400,000. This year Builtrite had net profits after tax of $220,000 before paying out $80,000 in dividends to its common stockholders and $40,000 to its preferred stockholders. What is the new level of retained earnings for Builtrite?

5)Builtrite had net profits before tax of $500,000 and a tax liability of $170,000. Builtrite also paid a common stock dividend of $40,000 and a preferred stock dividend of $30,000. What are the EACS (earnings available to the common stockholder)?