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Sneaker Inc. has come to your financial firm for counsel. Their tax rate is 40%. Income Statement Cost of Goods Sold 300 Interest Expense 30
Sneaker Inc. has come to your financial firm for counsel. Their tax rate is 40%. Income Statement
Cost of Goods Sold | 300 |
Interest Expense | 30 |
Operating Expense (excluding depreciation) | 115 |
Sales | 610 |
Tax | ___ |
Balance Sheet
Accounts Payable | 35 |
Accounts Receivable | 65 |
Accruals | 30 |
Accumulated Depreciation | (175) |
Cash | 35 |
Common Stock | 120 |
Fixed Assets (gross) | 390 |
Inventory | 135 |
Long Term Debt | 200 |
Retained Earnings | 65 |
1. What was Sneaker Inc.'s earnings before interest & tax (EBIT)?
a. | $185 |
b. | $195 |
c. | $160 |
d. | $215 |
e. | $120 |
2. Sneaker Inc.'s tax liability?
a. | $48 |
b. | $60 |
c. | $55 |
d. | $62 |
e. | $66 |
3. Sneaker Inc. Net Income?
a. | $72 |
b. | $83 |
c. | $99 |
d. | $93 |
e. | $76 |
4. Sneaker Inc. Total Current Assets?
a. | $450 |
b. | $240 |
c. | $625 |
d. | $235 |
e. | $490 |
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