Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 30, 2024

Fox Inc. had sales of $ 6 , 0 0 0 , 0 0 0 in 2 0 2 0 and a tax rate of

Fox Inc. had sales of $

6, 000, 000

2020

and a tax rate of

30 % .

The cost of goods sold was

75 %

of sales and the firms SGA was

10 %

of sales

(

which includes depreciation

) .

Fox had $

2

million of debt with a coupon of

5 %

and total assets of $

4, 500, 000 .

The company has been paying out

45 %

of its net income for dividends. And Fox Inc plans to grow sales by

15 %

2021 .

Assuming the basic structure of earnings and the balance sheet with respect to sales remains the same.

What is the firms projected assets in

2021 ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate Fox Incs projected assets in 2021 we need to estimate the companys net income retained ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Finance questions

Question

★★★★★

Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...

Answered: 1 week ago

Question

★★★★★

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Answered: 1 week ago

Question

★★★★★

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

Answered: 1 week ago

Question

★★★★★

Consider the following NLP problem: Maximize 2Xi + X2 - 2X3 + 3XiX2 + 1X subject to the constraints (a) Set up and solve the model by using Solver. Use a starting value of zero for each decision...

Answered: 1 week ago

Question

★★★★★

It clearly will cost a lot of money to switch from fossil fuels to renewables. How would you respond to someone who says that future costs from climate change are no concern of theirs?

Answered: 1 week ago

Question

★★★★★

Real estate, part 2. In the real estate research described in Exercise 29, 64% of homes for sale have garages, 21% have swimming pools, and 17% have both features. a) What is the probability that a...

Answered: 1 week ago

Question

★★★★★

=+Dependent variable is: Earnings R squared = 96.9% R squared (adjusted) = 94.6% s = 2.365 with 17 - 8 = 9 degrees of freedom Variable Coeff SE(Coeff) t-ratio P-value Intercept 21.0000 2.090 10.0...

Answered: 1 week ago

Question

★★★★★

a. International Paper Company (IP) needs $100 million of additional financing, but because of restrictions in existing debt covenants, it cannot place any more debt on its balance sheet. To obtain...

Answered: 1 week ago

Question

★★★★★

EXIT POSTING

Answered: 1 week ago

Question

★★★★★

Suppose you short the S&R index for $1000 and buy a 1050-strike call. Construct payoff and profit diagrams for this position. Verify that you obtain the same payoff and profit diagram by borrowing...

Answered: 1 week ago

Question

★★★★★

SHAREHOLDER'S EQUITY Problems Problem 1 AA Company reported the following equity accounts: Preference share capital, par valueP15 2,550,000 Share premium, preference share150,000 Ordinary share...

Answered: 1 week ago

Question

★★★★★

A gift shop sells 400 boxes of scented candles a year. The ordering cost is $$60$ for scented candles, and holding cost is $$24$ per box per year. What is the minimum annual amount of these...

Answered: 1 week ago

Question

★★★★★

A car rental agency uses 96 boxes of staples a year. The boxes cost $$4$ each. It costs $$10$ to order staples, and it costs $$0.80$ to hold a box of staples in inventory for 1 year. How many...

Answered: 1 week ago

Question

★★★★★

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago

Question

★★★★★

Pablo, Dirk and Franz run the only bar in town. Pablo wants to sell as many drinks as possible without losing money. Dirk wants the bar to bring in as much revenue as possible. Franz wants to make...

Answered: 1 week ago

Question

★★★★★

Continue with the gamma model of Exercise 5-2. (a) Show that \(\partial Q_{N}(\boldsymbol{\beta}) / \partial \boldsymbol{\beta}=\boldsymbol{N}^{-1} \sum_{i} 2\left[\left(y_{i}-\exp...

Answered: 1 week ago

Question

★★★★★

6.00 points Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $75,541 per year. Other information about this proposed project...

Answered: 1 week ago

Question

★★★★★

Independent random samples of sizes n1 = 30 and n2 = 50 are taken from two normal populations having the means 1 = 78 and 2 = 75 and the variances 21 = 150 and 22 = 200. Use the results of Exercise...

Answered: 1 week ago

Question

★★★★★

Calculate the amount of the child and dependent care credit allowed for 2012 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. a. William and Carla...

Answered: 1 week ago

Question

★★★★★

Leslie and Leon Lazo are married and file a joint return for 2012. Leslie's Social Security number is 466-47-3311 and Leon's is 467-74-4451. They live at 143 Snapdragon Drive, Reno, NV 82102. For...

Answered: 1 week ago

Question

★★★★★

In the 2012 tax year, Michelle paid the following amounts relating to her 2010 tax return: Tax deficiency..........................................$5,000 Negligence...

Answered: 1 week ago

Question

★★★★★

10. Rugby Injuries The prevalence and patterns of knee injuries among women collegiate rugby players were investigated using a sample questionnaire, to which 42 rugby clubs responded.19 A total of 76...

Answered: 1 week ago

Question

★★★★★

12. Catching a Cold Is your chance of getting a cold influenced by the number of social contacts you have? One study seems to show that the more social relationships you have, the less susceptible...

Answered: 1 week ago

Question

★★★★★

11. Favorite Fast Foods Is a customers preference for a fast-food chain affected by the age of the customer? If so, advertising might need to target a particular age group. Suppose a random sample of...

Answered: 1 week ago

Previous Question Next Question