Can you please show me your work, I've finished most of the questions already and these are the ones I dont get.

You must show your work for all questions. If you include only answers, you will not earn any points for given problems even if your answers are correct. 1. In 2015 J. Peterman Inc. incurred the following: (6 points) o o o o o o o o Sales of $5.25 million Cost of goods sold of $3.2 million Operating expenses of $1.2 million Interest expenses of $502,000 Dividend Income of $33,000 Paid off $1.5 million in debt Paid common stock dividends of $175,000 Paid a preferred stock dividend of $125,000 a. What was J. Peterman's taxable income in 2015? b. Using the tax table below, what was J. Peterman's tax liability in 2015? Taxable Income $0-$50,000 $50,000-$75,000 $75,000-$100,000 $100,000-$335,000 $335,000-$10,000,000 $10,000,000-$15,000,000 $15,000,000-$18,333,333 Over $18,333,333 c. Tax on Base of Bracket $ 0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 Percentage on Excess above Base (MTR) 15% 25% 34% 39% 34% 35% 38% 35% What was J. Peterman's Net Income in 2015? 1 2. Play Now began operations in 2011. The table below contains the company's taxable income during each year of its operations. Assume that the company has taken full advantage of the Tax Code's loss carry-back, carry-forward provisions and complete the table by providing Play Now's tax liability amounts for each year using a tax rate of 35%. Also include Year Taxable Income Tax Liability any refunds the firm might receive as well 2011 $410,000 in your answers. 2012 ($445,000) (5 2013 $105,000 points) 2014 ($70,000) 2015 $175,000 3. Indicate \"source\" or \"use\" next to each of the following cash events Bania Incorporated conducted during 2015: Event Issuance of stock Issuance of bonds Dividend payments Sale of old equipment Net Income Amount $250,000 $300,000 $95,000 $25,000 $440,000 Source/Use Bania began the year with $175,000 cash on hand; given the cash flows listed above, what was the ending cash balance for this firm at the end of 2015? (5 points) 4. Chiles Inc. reported $9.25 million of retained earnings in 2014. In 2015, the company paid dividends of $0.60 per share on 20 million shares and had earnings per share of $1.75. What was the retained earnings balance for Chiles Inc. at the end of 2015? (4 points) 2 5. A 5-year corporate bond yields 6.5%. A 5-year municipal bond of equal risk yields 4%. Assume that the state tax rate is zero. At what federal tax rate would you be indifferent between the two bonds? (4 points) 6. In 2014 Brandt-Leland reported $8,250,000 of sales, $6,100,000 of operating costs other than depreciation, and $1,250,000 of depreciation. The company had no amortization charges, it had $4,250,000 of bonds outstanding that carry a 6% interest rate, and its federal-plus-state income tax rate was 40%. 2015 data is expected to remain unchanged except for one item, depreciation, which is expected to increase by $225,000. By how much will the net income change as a result of the change in depreciation? Note: You will need to calculate the interest expense using information provided regarding the bonds. Assume the same amount of interest will be paid during both years on the outstanding bonds. (6 points) 3 Chapter 3 1. At the end of last year (2015), Bania Inc. reported $75 million of net income and $280 million of retained earnings. At the end of 2014, Bania had $240 million of retained earnings. What were the total dividends paid to shareholders last year? 2. Vandelay Industries reported net income of $335,000, their interest expense was $140,000, and its tax rate is 35%. If Vandelay Industries could have doubled its operating income (EBIT), what would have been the company's net income, all else equal? (2 points) 3. At the end of 2014, Vandelay Industries had $60 million in cash. During 2015, the following events occurred: Cash flow from Vandelay's operating activities totaled $220 million. Vandelay issued $345 million in common stock. Vandelay's notes payable decreased by $90 million. Vandelay purchased fixed assets totaling $465 million. How much cash did Vandelay Industries have at the end of 2015? (2 points) 4 Taxes 1. An investor in the 35 percent tax bracket is considering three investment options of equal risk: a corporate bond that yields 8%, a municipal (muni) bond that yields 5% and a preferred stock that yields 9%. Which investment should this investor choose? What is the after tax yield (ATY) of the recommended investment? (2 points) 2. H&H Bagels Inc. has the following cash flows: Operating income $351,000 Interest expense 61,000 Interest income 20,000 Dividends received 24,000 Dividends paid 12,000 Using the tax table provided, determine this firm's Taxable Income, MTR, Tax Liability and After-Tax income. (3 points) 5 6