
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Transcribed Image Text:4. Andre's Bakery has sales of $100,000 with costs of $50,000. Interest expense is $20,000 and depreciation is $10,000. The tax
rate is 35 percent. What is the amount of tax paid? (hint: 7000)(hint: tax = taxable income tax rate and taxable income =
EBT)
5. Andre's Bakery has sales of $100,000 with costs of $50,000. Interest expense is $20,000 and depreciation is $10,000. The tax
rate is 35 percent. The company also paid $3,000 for dividend. What is the retained earning? (hint: retained earning - net
income-dividend)(hint: 10,000)
6. The Blue Bonnet's 2021 balance sheet showed net fixed assets of $2.2 million, and the 2022 balance sheet showed net fixed
assets of $2.6 million. The company's income statement showed a depreciation expense of $1,000,000. What was the amount
of the net capital spending for 2022? ($1,400,000)
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