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pls answer 6 to 9. pls show the work in details. In-Class Exercise - Accounting Review Chapter 2 - Financial Statements, Cash Flow, and Taxes
pls answer 6 to 9. pls show the work in details.
In-Class Exercise - Accounting Review Chapter 2 - Financial Statements, Cash Flow, and Taxes 1. Frederickson Office Supplies recently reported $12,500 of sales, $7.250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non- operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus- state income tax rate was 40%. How much was the firm's taxable income, or earnings before taxes (EBT)? 2. Meric Mining Inc. recently reported $15,000 of sales. $7.500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? Meric uses the same depreciation expense for tax and stockholder reporting purposes. 3. Bae Inc. has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have? Sales Costs Depreciation EBIT Interest Expense EBT Taxes (35%) Net Income $2,000 $1.200 $100 $700 $200 $500 $175 S325 4. On 12/31/2015, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2014, the company had reported $555,000 of retained earnings. No shares were repurchased during 2015. How much in dividends did Heaton pay during 2015? 5. Ullrich Printing Inc. paid out $21,750 of common dividends during the year. It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250. How much net income did the firm eam during the year? 6. During the past year, Jameson Plumbing paid $45,750 in interest along with $45.000 in dividends. The company issued $175,000 of stock and $150,000 of new debt. The company reduced the balance due on the old debt by $275,000. What is the amount of the cash flow to creditors? 7. The Burger Place paid $8,500 in dividends and $18,500 in interest over the past year. Sales totaled $225,750 with costs of $135,550. The depreciation expense was $25,000. The applicable tax rate is 35 percent. What is the amount of the operating cash flow (OCF)? 8. The financial statements of WaterEdge Marina reflect depreciation expenses of $22,800 and interest expenses of $34,800 for the year. The current assets increased by $44,400 and the net fixed assets increased by $36,750. What is the amount of the net capital spending (NCS) for the year? 9. Leslie Printing has net income of $26,310 for the year. At the beginning of the year, the firm had common stock of $55,000. paid-in surplus of $11,200, and retained earnings of $48,420. At the end of the year, the firm had total equity of $142,430. The firm does not pay dividends. What is the amount of the net new equity raised during the yearStep by Step Solution
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