The Analtoly Corporation is an electronics dealer and distributor. Sales for the last year were $4.5 million, and cost of goods sold was $2 million and operating expenses totaled $1.2 million. Analtoly also paid $150,000 in interest expense, and depreciation expense totaled $50,000. In addition, the company sold securities for $120,000 that it had purchased 4 years earlier at a price of $40,000.

1. Compute Taxable Income (5 marks)
2. Compute the tax liability for Analtoly. (5 marks)

Corporate Tax Rates

Taxable Income	Corporate Tax Rate
$1 - $50,000	15%
$50,001 - $75,000	25%
$75,001 - $10 million	34%
over $10 million	35% and
$100,000 - $335,000	5% surtax
$15m - $18.333 m	3% surtax

Apply the usual important considerations.

c] Explain objectives of Corporate Financial Management. (500 words) (5 marks)