Andrews, Inc. is a U.S.-based direct seller of a wide array of athletic products for men. Andrews, markets leading NFL, NBA and MLB athletic products in more than 100 countries. As part of the training in its corporate treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary earnings/distribution analysis. Use the data below to calculate the following values in the Firms Foreign Subsidiary Tax Computation.

Calculate the following:

Net income available for distribution

Distributed earnings

Withholding taxes on dividends

Net remittance to U.S. parent

Data given:

Foreign corporate income tax rate		30%
U.S. corporate income tax rate		35%
Foreign dividend witholding tax rate		20%
U.S. ownership in foreign firm		100%
Dividend payout rate of foreign firm		100%

Beginning taxable income is $3,200,000

Taxable income of foreign subsidiary
Foreign corporate income tax
Net income available for distribution
Retained earnings
Distributed earnings
Distribution to U.S. parent company
Withholding taxes on dividends
Net remittance to U.S. parent