Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Given the following information for O'Hara Marine Co., calculate the depreciation expense: sales = $91,000; costs = $45,300; addition to retained earnings = $14,300; dividends paid = $3,520; interest expense = $3,850; tax rate = 23 percent
Use the following selected balance sheet and income statement information for Stevens Co. to compute asset turnover, to the nearest hundredth of a percent.
Operating profit
before tax
Net Income
Average
total assets
Sales
Tax rate on
operating profit
$120,000
$192,500
$653,000
$1,250,000
35%
a.
1.34
b.
1.91
c.
0.52
d.
0.29
You are given the following information for O'Hara Marine Co.: sales = $76,240; costs = $35,310; addition to retained earnings = $9,600; dividends paid = $8,730; interest expense = $2,640; tax rate = 24 percent. Calculate the depreciation expense. (Do not round intermediate calculations.)
Chapter 2 Solutions
Corporate Finance
Ch. 2 - Prob. 1CQCh. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Prob. 4CQCh. 2 - Prob. 5CQCh. 2 - Cash Flow from Assets Why is it not necessarily...Ch. 2 - Operating Cash flow Why is it not necessarily bad...Ch. 2 - Net Working Capital and Capital Spending Could a...Ch. 2 - Cash Flow to Stockholders and Creditors Could a...Ch. 2 - Prob. 10CQ
Ch. 2 - Building a Balance Sheet Alesha, Inc., has current...Ch. 2 - Building an Income Statement Gia, Inc, has sales...Ch. 2 - Market Values and Book Values Klingon Cruisers,...Ch. 2 - Calculating Taxes Terri Simmons is single and had...Ch. 2 - Calculating OCF Sheaves, Inc., has sales of...Ch. 2 - Prob. 6QAPCh. 2 - Prob. 7QAPCh. 2 - Prob. 8QAPCh. 2 - Prob. 9QAPCh. 2 - Prob. 10QAPCh. 2 - Cash Flows Ritter Corporations accountants...Ch. 2 - Financial Cash Flows The Stancil Corporation...Ch. 2 - Building an Income Statement During the year, the...Ch. 2 - Prob. 14QAPCh. 2 - Prob. 15QAPCh. 2 - Residual Claims Stark: Inc., is obligated to pay...Ch. 2 - Net Income and OCF During 2019, Rainbow Umbrella...Ch. 2 - Prob. 18QAPCh. 2 - Prob. 19QAPCh. 2 - Prob. 20QAPCh. 2 - Prob. 21QAPCh. 2 - Prob. 22QAPCh. 2 - Cash Flows You are researching Time Manufacturing...Ch. 2 - Prob. 24QAPCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MC
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- You are given the following information for Bowie Pizza Co. Sales = $64,000; Costs = $30,700, Addition to retained earnings expense = $4,400; Tax rate = 22 percent. $5/700. Dividends paid - $1.980 Interest Calculate the depreciation expense.arrow_forwardYou are given the following information for Troiano Pizza Company: sales = $76,800; costs = $36,900; addition to retained earnings = $6,800; dividends paid = $2,370; interest expense = $5,300; tax rate = 22 percent. Calculate the depreciation expense.arrow_forwardGiven the following information for Sookie's Cookies Co., calculate the depreciation expense: sales - $97,009; costs - $52,981; addition to retained earnings - $1,062; dividends paid - $1,821; interest expense = $1,439; tax rate= 39 percent. (Hint: Build the Income Statement and fill in the missing pieces until you get to the depreciation expense. You may have to work from bottom up.)arrow_forward
- Consider the following income statement: Sales Costs $ 602,184 391,776 Depreciation 89,100 Taxes Calculate the EBIT. EBIT 21% Calculate the net income. Net incomearrow_forwardYou are given the following information for Oceans of Fun.: sales = $74, 020; costs = $34, 980; addition to retained earnings 59,540; dividends paid $7,800; interest expense $2, 580; tax rate = 21 percent. Calculate the depreciation expense. (Do not round intermediate calculations.)arrow_forwardYou are given the following information for Troiano Pizza Company: sales = $69,400; costs = $52,100; addition to retained earnings = $4,700; dividends paid = $2,480; interest expense = $2,190; tax rate = 21 percent. Calculate the depreciation expense for the company. Note: Do not round intermediate calculations and round your answer to the nearest whole number Depreciation Expense =arrow_forward
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- Company A has sales of $830, costs of $290 (not including depreciation), depreciation expense of $40, interest expense of $40, and a tax rate of 21 percent, current assets of $260, net fixed assets of $1850, current liabilities of $240, and long-term debt of $700. What is the total asset turnover? (keep two decimal places) Your Answer: 0.39arrow_forwardPrepare a common size income statement given the following information: Revenues = $100,000 COGS = $43,000 SG&A = $22,000 Depreciation = $10,000 Interest Owed = $5,000 Tax Rate = 40%arrow_forwardNet Income and OCF During the year, BelykPaving Co. had sales of $2,600,000.Cost of goods sold.administrative and sellingexpenses,and depreciationexpense were $1,535,000，$465,000，and $520.000respectively. In addition,the company had an interesexpense of $245,000 and a tax rate of 35 percent. (lgnoreany tax loss carryback or carryforward provisions.忽略税收)a. What is the company's net income?b. What is its operating cash flow?c.Explain your results in parts (a) and (b).arrow_forward
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