1. If a firm's taxable income is $10 million, tax liability is $3 million, and dividends paid...
Question:
1. If a firm's taxable income is $10 million, tax liability is $3 million, and dividends paid is $2 million, what is the addition to retained earnings?
2. For a firm with the following info., what is the value of equity?
Prepaid expenses=$2 million,
Cash=$4 million,
Accounts payable=$1 million,
Long-term debt=$43 million,
Inventory=$10 million,
Notes payable=$5 million,
Net property, plant and equipment=$34 million,
Accounts receivable=$5 million.
3. For a firm with the following info., what is the Net Working Capital?
Prepaid expenses=$2 million,
Cash=$4 million,
Accounts payable=$3 million,
Long-term debt=$40 million,
Equity=$10 million,
Net property, plant and equipment=$35 million,
Accounts receivable=$5 million,
Inventory=$10 million.
The firm also has some short-term bank loan outstanding (Notes Payable).
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill