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Stansfield Corporation Income Statement ($ in millions) Sales $300 Costs 250 EBT $50 Taxes (34%) 17 Net income $33 Retained earnings 22 Dividends 11 Stansfield
Stansfield Corporation Income Statement ($ in millions)
Sales
$300
Costs
250
EBT
$50
Taxes (34%)
17
Net income
$33
Retained earnings
22
Dividends
11
Stansfield CorporationBalance Sheet ($ in millions)
Cash
$5
Accounts Payable
$40
Accounts receivables
40
Notes payable
30
Inventory
65
Current liabilities
$70
Current assets
$110
Long-term debt
155
290
Common stock
75
Retained earnings in Millions
100
Total assets
$400
Total liab. &equity
$400
Assume Stansfield Corporation is utilizing its fixed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains unchanged. If sales increase by 20%, what will total fixed assets be?
Sales
$300
Costs
250
EBT
$50
Taxes (34%)
17
Net income
$33
Retained earnings
22
Dividends
11
Stansfield CorporationBalance Sheet ($ in millions)
Cash
$5
Accounts Payable
$40
Accounts receivables
40
Notes payable
30
Inventory
65
Current liabilities
$70
Current assets
$110
Long-term debt
155
290
Common stock
75
Retained earnings in Millions
100
Total assets
$400
Total liab. &equity
$400
Assume Stansfield Corporation is utilizing its fixed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains unchanged. If sales increase by 20%, what will total fixed assets be?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
