C. SOLVING PROBLEMS (Each item 10 p;Total 60p) 1. Based on the information given below in Table 1, calculate the dividends paid in 2x02. Table 1: Financial Information of Company James March 2x01 March 2x02 Net income $1,500 $3,000 Accounts receivable 750 750 Accumulated depreciation 1,125 1,500 Common stock 4,500 5,250 7,500 8,250 Capital surplus Retained earnings 1,500 2,250 Accounts payable 750 750 2. Using the information provided below, calculate net income for 2:01. Assume a tax rate of 40 percent. Year 2001 Inventory $5,000 Revenues 200,000 5,000 Depreciation expense Cost of goods sold Interest expense Operating expenses 100,000 10,000 30,000 3. Based on the following selected financial information below for Metalworks Co, calculate net Income for 2x02. 2-01 2:02 Dividends paid 400 $700 Acets.payable/accr. 300 500 Long-term debt 2,300 2,000 3,000 Common stock 2,200 Retained earnings 6,150 6,350 4. Poll, Inc. had sales of $6 million during the past year. The cost of goods sold amounted to 53 million Operating expenses totaled $ 2.6 million and interest expense was $30.000. Determine the firm's taxable income and total tax liability for 2x01: For calculating of tax liability use the following tax rates: Tax rate Income $0-$50,000 15% $50,001-$75,000 25% $75,001-$100,000 34% $100,001 $335,000 39% over $335,001 34% 5. Using the information provided below, prepare: a. the Income Statement (10p) b. the balance sheet of the company (10p). Financial Data for AB Co Inc. December 31,2x01 Inventory $206,250 Long-term debt 300,000 Interest expense 5,000 Accumulated depreciation 442,500 Cash 180,000 Net sales (all credit) 1,500,000 Common stock 800,000 Accounts receivable 225.000 Operating expenses 525,000 Notes payable current 187,500 Cost of goods sold 937.500 Plant and equipment 1,312,500 Accounts payable 168,750 Marketable securities 95,000 Prepaid insurance 80,000 Accrued wages 65,000 Retained earnings-current-year 135,000 Federal income taxes 5,750