This is the two parts of single question Davis Inc. has the following information reported by its chief accountant for thecurrent year:Corporate tax rateSalesWACCOperating incomeTotal assetsCurrent liabilities35%$7,320,00012.5%$457,000$2,368,000$600,000What's the company's profit margin?a) 0.32O b) 0.19O c) 0.06O d) 3.09 Davis Inc. produces three product lines in its manufacturing facility in St. John's, NL:Product Line (1), Product Line (2), Product Line (3). Davis is considering droppingProduct Line (2) because it has been unprofitable for the past two years. Which ofthe following items is (are) irrelevant to Davis' decision to drop/keep Product Line(2)?O a) Total cost of rent on the manufacturing facility.O b) Customer demand for Product Line (2).Oc) Savings in direct materials cost associated with Product Line (2).O d) All of the above items are considered relevant in the decision.

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Davis Inc. has the following information reported by its chief accountant for the current year: 35% $7,320,000 12.5% $457,000 $2,368,000 $600,000 Corporate tax rate Sales WACC Operating income Total assets Current liabilities What's the company's profit margin?

Davis Inc. has the following information reported by its chief accountant for the current year: 35% $7,320,000 12.5% $457,000 $2,368,000 $600,000 Corporate tax rate Sales WACC Operating income Total assets Current liabilities What's the company's profit margin?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 4BCRQ

See similar textbooks

Similar questions

Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Refer to the information for Somerville Company on the previous pages. Also, assume that the price per common share for Somerville is 8.10. Required: Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows. Also, assume a tax rate of 31%. Somerville CompanyIncome StatementFor the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0 Gross margin $2,898,696 35.0 Less: Operating expenses (1,323,368) 16.0 Operating income $1,575,328 19.0 Less: Interest expense (50,000) 0.6 Income before taxes $1,525,328 18.4 Less: Income taxes (31%)* (472,852) 5.7 Net income $1,052,476 12.7 * Includes both state and federal taxes. Somerville CompanyStatement of Retained EarningsFor the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income $1,052,476 Total $3,031,631 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period…
Selected information from the annual financial statements of Delicata Industries is shown below. ($ in thousands) Revenue Operating income Net other income(expense) Net income 240,000 5,600 196,480 Average operating assets 4,200,000 Average operating liabilities 1,800,000 Current Financials $1,500,000 Delicata has an income tax rate of 20%. a. What is Delicata's net operating profit after taxes (NOPAT) for the year? $0 b. Calculate Delicata's net operating profit margin (NOPM) for the year. Result Numerator + Denominator = 0 + $ 0 = NOPM $ c. Calculate Delicata's return on net operating assets (RNOA) for the year. Numerator + Denominator = Result 0 + $ 0 = RNOA $ 96
K McDaniel and Associates, Inc. reported the following amounts on its 2024 income statement: Year Ended December 31, 2024 Net income Income tax expense Interest expense $ 22,950 6,600 3,000 What was McDaniel's times-interest-earned ratio for 2024? OA. 7.65 OB. 10.85 OC. 9.85 OD. 8.65 point(s) possible ...
The financial data of Mammoth corporation for the year ended 31st December,2020 is as followsParticulars Variable expense as percentage of sales 66.67Interest Expense ($) 200DOL 5DFL 3Income tax rate 0.35Requirement:a) Prepare income statement for company.
Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 115 125 COGS (30) (31) Gross Profit 85 94 Overhead (32) (41) Pre-tax Income 53 53 Net Income = $[?] Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. %3D Enter Copyright 2003 - 2021 Acellus Corporation. All Rights Reserved,
17) Use the data below to answer the question that follows. Corporate Tax Rate Year Revenues Cost of Goods Sold Selling and Admin. Expenses Capital Cost Allowance Accounts Receivable Inventory Accounts Payable Gross Fixed Assets 30% 1 2 3 $330,000 $340,000 $380,000 $110,000 $150,000 $180,000 $50,000 $130,000 $140,000 $11,000 $12,000 $13,000 $40,000 $43,000 $47,000 $35,000 $38,000 $39,000 $15,000 $18,000 $19,000 $100,000 $120,000 $130,000 The cost of goo sold row excludes any depreciation or capital cost allowance. What is the free cash flow generated for year 2? a) $22,300 b) $22,450 c) $22,600 d) $27,250 e) $31,900
What is companies net income? The following information is given to you relating to the operations of PrincehallCorporation: The income tax rate is 40%. Net sales $11,862 Cost of sales 8,321 Gross margin ? Selling, general, and administrative expenses $ 2,743 Depreciation, amortization, and asset write-offs 278 Total operating expenses: ? Income from operations : ? Interest expense 91 Interest and other income 11 Earnings before income taxes: ? Income taxes ? Net earnings: ? Determine the nest income of the company.
Hedepeth fne net income for the most recent year was S15,185, The tax rate was 34 percent The mm paid $3,806 in total interest expense and deducted $2,485 in depreciation expense. a) What is the company's Earnings Before Taxes (EBT) b) What is the company's Earnings Before Interest and Taxes (EBIT) c) What is the company's Earnings Before Interest, Taxes, and Depreciation (EBITD) d) What was the cash coverage ratio for the year and how do you interpret your answer?
Consider the following data from the financial statements of Stevenson Company, which has a tax rate of 30%: Year 2 Year 1 Sales $ 21,000,000 $ 19,500,000 Cost of goods sold 7,413,000 6,630,000 Net income 1,890,000 1,560,000 Interest expenses 164,500 144,500 Income taxes 220,286 196,286 Current assets 2,250,000 2,115,000 Total assets 5,050,000 4,760,000 Total liabilities 760,000 750,000 Total stockholders' equity 4,290,000 4,010,000 1. Refer to the information above. What was the gross margin percentage for Year 2? 2. Refer to the information above. What was the net profit margin percentage for Year 2? 3. Refer to the information above. What was the return on total assets for Year 2? 4. Refer to the information above. What was the return on equity for Year 2?