The Tree Corporation sold 200,000 units at a price of $5. Each unit cost $1.8 or 36% of sales to produce. The fixed costs are $75,000. Depreciation is $125,000. Interest expense is 12% of long-term debt. Dividends are going to be 10¢ per share. Tree has 250,000 outstanding shares. Accounts receivable increased by $35,000. Inventory increased by $180,000. Notes payable increased by $10,000. Accounts payable increased by $15,000. Their stock sells for $17.39.

Tax table:

Taxable income: $0-50,000 tax rate: 15%, tax liability: $7,500

taxable income: $50,001-75,000 tax rate: 25%, tax liability: $ 13,750

taxable income: $75,001-100,000 tax rate: 34%, tax liability: $22,250

taxable income: $100,001-335,000 tax rate: 39%, tax liability $113,900

taxable income: $335,001-10,000,000 tax rate: 34%, tax liability $3,400,000

Calculate the following:

Sales

COGS

Depreciation

EBIT

Interest

EBT

Taxes

Net Income

Dividends Net Earnings

Answer rating: 100% (QA)

To solve this problem we will use the following formulas Sales Units sold x Price per unit COGS Unit... View the full answer