Question
The Tree Corporation sold 200,000 units at a price of $5. Each unit cost $1.8 or 36% of sales to produce. The fixed costs are
The Tree Corporation sold 200,000 units at a price of $5. Each unit cost $1.8 or 36% of sales to produce. The fixed costs are $75,000. Depreciation is $125,000. Interest expense is 12% of long-term debt. Dividends are going to be 10ยข per share. Tree has 250,000 outstanding shares. Accounts receivable increased by $35,000. Inventory increased by $180,000. Notes payable increased by $10,000. Accounts payable increased by $15,000. Their stock sells for $17.39.
Tax table:
Taxable income: $0-50,000 tax rate: 15%, tax liability: $7,500
taxable income: $50,001-75,000 tax rate: 25%, tax liability: $ 13,750
taxable income: $75,001-100,000 tax rate: 34%, tax liability: $22,250
taxable income: $100,001-335,000 tax rate: 39%, tax liability $113,900
taxable income: $335,001-10,000,000 tax rate: 34%, tax liability $3,400,000
Calculate the following:
Sales
COGS
Depreciation
EBIT
Interest
EBT
Taxes
Net Income
Dividends Net Earnings
Step by Step Solution
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Step: 1
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