Currently the federal tax code uses a progressive rate system for both corporate and individual taxes. Some politicians have proposed a flat rate assessed on gross sales or gross earnings, without any allowance for deducting expenses or other items. The proposed method would raise the same amount of revenue as the current method does. What method do you think is best and why?

Chicago Chemicals management identified the following cash flows as significant in its year end meeting with analysts. During the year, Chicago repaid an existing debt of $312,080 and raised additional debt capital in the amount of $650,000. It also repurchased stock in the open market for a total of $45,250. What is the net cash provided or used for financing for the year?

Alabama Paper Mill, Inc. had a beginning retained earnings of $323,325. During the year the net income was $713,445 and they paid out 45% of net income in dividends. What was the ending retained earnings? Show solution in a statement of retained earnings format.

The Idaho Corporation earned $23,458,933 before interest and taxes for the year ended December 31, 2016. If the interest expense was $1,645,123, calculate the tax obligation for the year using a rate of 35%. Also, what is the acronym for earnings before interest and taxes?

River City Amusements, Inc. has revenues of $867,030, operating expenses excluding depreciation of $356,240, depreciation expense of $103,456, and interest expense of $52,423. What was the net income if the tax rate was 45%?