Home Value has operating income (EBIT) of $7,900,000. The company‘s depreciation expense is $987,000, its interest expense is $1,300,000, and its income tax rate is 30%. Assume the firm has no amortization expense. What is its net income?

2. Odie, Inc. reported net income of $400,000 for 2019. Its EBITDA amounted to $1,000,000 and interest expense was $175,000. Odie’s corporate income tax rate was 35%. Calculate the amount of depreciation expense that was reported in its income statement.

3. Total assets = $959, fixed assets = $690, current liabilities = $360, equity = $300, and long-term debt = $299. What is the value of net working capital?

4. Ghost Industries has net working capital of $12,700, current assets of $38,200, equity of $55,500, and long-term debt of $11,600. What is the amount of the net fixed assets?

5. Feather, Inc. has net income of $3,500,000. The company‘s depreciation expense is $680,000, its interest expense is $300,000, and its income tax rate is 45%. What is its taxable income?

6. Use the following information to answer the following questions:

Taxable income Tax rate

$ 0 – $ 50,000 15%

$ 50,001 – $ 75,000 25%

$ 75,001 – $100,000 34%

$ 100,001 – $335,000 39%

$ 335,001 – $10.000 million 34%

$10,000,001 – $15.000 million 35%

$15,000,001 – $18.333 million 38%

$18,333,334 and above 35%

A. If a firm has taxable income of $17.2 million, its marginal tax rate is _____ .

B. If a firm has taxable income of $17.2 million, its average tax rate is _____.