of net income was its interest expense) e The dite ende ame procedure 3-2 13 million of INCOME STATEMENT Iron Baoks Inc. recently reported was $20.8 million and its tax rate was 35. What was its interest Write out the headines for an income statement, and fill in the known valu 5 million of net income by ( 1 T 0.65 to find the pretax income T between ERIT and taxable income must be interest expense. Use this same complete similar problems.) INCOME STATEMENT Pattern Brothers recently reported an EBITDA of $75 net income of $2.1 million I had $20 million of interest expense, and its cor was 30%. What was its charge for depreciation and amortization? $75 million 3-3 INCOME STA orporate taxe STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statement Inc. reported $75 million of net income and $825 million of retained eamings. The retained earnings were $784 million. How much in dividends were paid to sh during the year? Assume that all dividends declared were actually paid ments, Nestle s. The previous shareholders 3-5 cheet, its stock MVA Harper Industries has $900 million of common equity on its balance sheet i price is SSO per share, and its market value added (MVA) is 550 million. How mon shares are currently outstanding? illion. How many com 3-6 MVA Over the years Masterson Corporation's stockholders have provided $34.0 capital when they purchased new issues of stock and allowed management to retain of the firm's earnings. The firm now has 2,000,000 shares of common stock outsta and the shares sell at a price of 525 per share. How much value has Masterson's ment added to stockholder wealth over the vers, that is, what is Masterson's MVAS EVA Barton Industries has operatine income for the vear of $3.500,000 and a 36 Its total invested capital is $20.000.000 and its after-tax percentage cost of capital What is the firm's EVA? 3-7 3-8 PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table presented in the chapter. Assume that their taxable income this year was $375,000 3-9 a. What is their federal tax liability b. What is their marginal tax rate? c. What is their average tax rate? BALANCE SHEET Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Explain and state the assumptions that underlie your answet a. It issues S4 million of new common stock b. It buys new plant and equipment at a cost of $3 million It reports a large loss for the year. d. It increases the dividends paid on its common stock STATEMENT OF STOCKHOLDERS' EQUITY Electronics World Inc. paid out $22.4 million total common dividends and reported 51:44.7 million of retained earnings at year-end prior year's retained earnings were 595.5 million. What was the net income? Assume all dividends declared were actually paid. EVA For 2018, Gourmet kitchen Products reported 522 million of sales and $19 of operating costs (including depreciation). The company has $15 million of total capital. Its alter-tax cost of capital is 10 , and its federal-plus-state come tax ta 36. What was the firm's economic value added (EVA), that is, how much value agement add to stockholders' wealth during 2018? Million of sales and $19 million STATEMENT OF CASH FLOWS Hampton Industries had $39.000 in cash at year and $11,000 in cash at year-end 2018. The firm invested in property, plant, and totaling $210,000. Cash flow from financing activities totaled +$120,000 n of total invested come tax rate was och value did man What was the cash flow from operating activities? b. If accruals increased by 515,000, receivables and inventories increased by $50 depreciation and amortization totaled $25,000, what was the firm's net incom at year end at nd equipment sed by $50,000, and of net income was its interest expense) e The dite ende ame procedure 3-2 13 million of INCOME STATEMENT Iron Baoks Inc. recently reported was $20.8 million and its tax rate was 35. What was its interest Write out the headines for an income statement, and fill in the known valu 5 million of net income by ( 1 T 0.65 to find the pretax income T between ERIT and taxable income must be interest expense. Use this same complete similar problems.) INCOME STATEMENT Pattern Brothers recently reported an EBITDA of $75 net income of $2.1 million I had $20 million of interest expense, and its cor was 30%. What was its charge for depreciation and amortization? $75 million 3-3 INCOME STA orporate taxe STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statement Inc. reported $75 million of net income and $825 million of retained eamings. The retained earnings were $784 million. How much in dividends were paid to sh during the year? Assume that all dividends declared were actually paid ments, Nestle s. The previous shareholders 3-5 cheet, its stock MVA Harper Industries has $900 million of common equity on its balance sheet i price is SSO per share, and its market value added (MVA) is 550 million. How mon shares are currently outstanding? illion. How many com 3-6 MVA Over the years Masterson Corporation's stockholders have provided $34.0 capital when they purchased new issues of stock and allowed management to retain of the firm's earnings. The firm now has 2,000,000 shares of common stock outsta and the shares sell at a price of 525 per share. How much value has Masterson's ment added to stockholder wealth over the vers, that is, what is Masterson's MVAS EVA Barton Industries has operatine income for the vear of $3.500,000 and a 36 Its total invested capital is $20.000.000 and its after-tax percentage cost of capital What is the firm's EVA? 3-7 3-8 PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table presented in the chapter. Assume that their taxable income this year was $375,000 3-9 a. What is their federal tax liability b. What is their marginal tax rate? c. What is their average tax rate? BALANCE SHEET Which of the following actions are most likely to directly increase cash as shown on a firm's balance sheet? Explain and state the assumptions that underlie your answet a. It issues S4 million of new common stock b. It buys new plant and equipment at a cost of $3 million It reports a large loss for the year. d. It increases the dividends paid on its common stock STATEMENT OF STOCKHOLDERS' EQUITY Electronics World Inc. paid out $22.4 million total common dividends and reported 51:44.7 million of retained earnings at year-end prior year's retained earnings were 595.5 million. What was the net income? Assume all dividends declared were actually paid. EVA For 2018, Gourmet kitchen Products reported 522 million of sales and $19 of operating costs (including depreciation). The company has $15 million of total capital. Its alter-tax cost of capital is 10 , and its federal-plus-state come tax ta 36. What was the firm's economic value added (EVA), that is, how much value agement add to stockholders' wealth during 2018? Million of sales and $19 million STATEMENT OF CASH FLOWS Hampton Industries had $39.000 in cash at year and $11,000 in cash at year-end 2018. The firm invested in property, plant, and totaling $210,000. Cash flow from financing activities totaled +$120,000 n of total invested come tax rate was och value did man What was the cash flow from operating activities? b. If accruals increased by 515,000, receivables and inventories increased by $50 depreciation and amortization totaled $25,000, what was the firm's net incom at year end at nd equipment sed by $50,000, and