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10,000 80,000 300,000 500,000 1,500,000 10,000,000 20,000,000 WEEK 1 HOMEWORK ASSIGNMENT- 240 Problem P2-2 (Part a only): Part a. Average Corporate Tax Rates Earnings After-
| 10,000 | |||||||||
| 80,000 | |||||||||
| 300,000 | |||||||||
| 500,000 | |||||||||
| 1,500,000 | |||||||||
| 10,000,000 | |||||||||
| 20,000,000 | |||||||||
|
WEEK 1 HOMEWORK ASSIGNMENT- 240 | |||||||||
| Problem P2-2 (Part a only): | |||||||||
| Part a. | Average Corporate Tax Rates | ||||||||
| Earnings | After- | Average | |||||||
| Before | Tax | tax | Tax | ||||||
| Taxes | Liability | Earnings | Rate | ||||||
| 10,000 | |||||||||
| 80,000 | |||||||||
| 300,000 | |||||||||
| 500,000 | |||||||||
| 1,500,000 | |||||||||
| 10,000,000 | |||||||||
| 20,000,000 | |||||||||
| Problem P2-5 | |||||||||
| Earnings before interest and taxes(EBIT): | $50,000 | ||||||||
| Tax Rate: | 35% | ||||||||
| Part a: The firm pays $12,000 in interest | |||||||||
| EBIT | |||||||||
| Less:Interest Expense | |||||||||
| Earnings before taxes | |||||||||
| Less: Taxes | |||||||||
| Earnings after taxes | |||||||||
| and available to | |||||||||
| common stockholders | |||||||||
| Part b: The firm pays $12,000 in preferred dividends | |||||||||
| Earnings before taxes | |||||||||
| Less: Taxes | |||||||||
| Earnings after taxes | |||||||||
| Less: Preferred div. | |||||||||
| Earnings available to | |||||||||
| common stockholders | |||||||||
| Exercise 3-1 (Parts a. and b. only): | |||||||||
| | (Use Table 3.1 as example) | ||||||||
| Part a. | |||||||||
| My Company | |||||||||
| Income Statement | |||||||||
| For Year Ended, December 31, 200X | |||||||||
| Sales Revenue | |||||||||
| Less: Cost of Goods Sold | |||||||||
| Gross Profit | |||||||||
| Less: Operating Expenses | |||||||||
| Selling Expense | |||||||||
| Gen. & Admin. Expense | |||||||||
| Lease Expense | |||||||||
| Depreciation Expense | |||||||||
| Total Operating Expenses | |||||||||
| Operating Profit (EBIT) | |||||||||
| Less: Interest Expense | |||||||||
| Net Profit Before Taxes | |||||||||
| Less: Income Taxes (35%) | |||||||||
| Net Profits after Taxes | |||||||||
| Part b. Income Taxes (Calculate Income Taxes Paid Only) | |||||||||
| Net Profit before Taxes | |||||||||
| Income Tax Rate | |||||||||
| Income Taxes Paid | |||||||||
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Managerial Accounting
Authors: Kurt Heisinger, Joe Ben Hoyle
1st Edition
1453345299, 9781453345290
