1a. Beach Front Equipment has cost of goods sold of $12,610, interest expense of $320, dividends of $85, depreciation of $680, and an addition to retained earnings of $511. What is the taxable income given a tax rate of 21 percent?

a. $754.43

b. $849.37

c. $906.33

d. $946.84

e. $1,135.05

1b. Pittsburgh Motors has sales of $767,000 with costs of $587,300. Interest expense is $34,570 and depreciation is $22,600. The tax rate is 21 percent. What is the net income?

a. $57,330.00

b. $60,672.50

c. $96,798.70

d. $106,470.00

e. 112,677.50

1c. Haim Bakery has projected annual net income of $35,470, of which 40 percent will be distributed as dividends. Assume the company will net sales of $5,245 worth of common stock. What will be the cash flow to stockholders if the tax rate is 21 percent?

a. -$11,754

b. -$8,670

c. -$850

d. $2,203

e. $8,943