• Chapter 2, problem 1 (page 34).

Building a Balance Sheet:

Rose, Inc. has current assets on $7,300, net fixed assets of $26,200, current liabilities of $5,700, and long-term debt of $ 12, 900. What is the value of the shareholders? equity account for this firm? How much is net working capital?

• Chapter 2, problem 2 (page 34).

Building an Income Statement:

Miller, Inc, has sales of $675,300, costs of $297,800, depreciation expense of $45,100, interest expense of $20,700, and a tax rate of 35 percent. What is the net income for the firm? Suppose the company paid out $62,000 in cash dividends. What is the addition to retained earnings?

• Chapter 2, problem 4 (page 34).

Calculating Taxes

The Alexander Co. had $315,000 in taxable income. Using the rates from Table 2.3 in the chapter, calculate the company?s income taxes. What is the average ta rate? What is the marginal tax rate?

TAXABLE INCOME	TAX RATE
$ 0-50,000	15%
50,001-75,000	25%
75,001-100,000	34%
100,001-335,000	39%
335,001-10,000,000	34%
10,000,001- 15,000,000	35%
15,000,001-18,333,333	38%
18,333,334 +	35%

• Chapter 2, problem 5 (page 34).

Calculating OCF

Timsunb, Inc., has sales of $29,200, cost of $10,400, depreciation expense of $1,800. And interest expense of $1,050. If the tax rate is 40 percent what is the operating cash flow, or OCF?

• Chapter 3, problem 2 (page 74).

Equity Multiplier and Return on Equity

Locker Company has a debt-equity ratio of 65. Return on assets is 9.8 percent and total equity is $850,000. What is the equity multiplier? Return on equity? Net income?

• Chapter 3, problem 6 (page 75).

Sustainable Growth

If the SGS Corp. has a 16 percent ROE and a 25 percent payout ratio, what is its sustainable growth rate?

I have also encluded an attachment where the answers are to be placed. Can you please assist me.

UNIT 1: TEXTBOOK PROBLEMS CHAPTER 2: PROBLEM 1 Current Assets Net Fixed Assets Current Liabilities Long-Term Debt $7,300 $26,200 $5,700 $12,900 Shareholder Equity = Net Working Capital = CHAPTER 2: PROBLEM 2 Sales Costs Depreciation Expense EBIT Interest Expense EBT Taxes @ 35% Net Income = Cash Dividends Addition to Retained Earnings = Tax Rate = Income Statement $675,300 $297,800 $45,100 $20,700 $62,000 35% CHAPTER 2: PROBLEM 4 Taxable Income $315,000 Table 2.3 Income Taxes = Average Tax Rate = Marginal Tax Rate = Taxable Income Taxable Income (cont) Tax Rate 0 50,001 75,001 100,001 335,001 10,000,001 15,000,001 18,333,334 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 + 15% 25% 34% 39% 34% 35% 38% 35% (Note: No formula needed. Just inpu CHAPTER 2: PROBLEM 5 Sales Costs Depreciation Expense EBIT Interest Expense EBT Taxes @ 40% Net Income Tax Rate $29,200 $10,400 $1,800 $1,050 40% Operating Cash Flow = CHAPTER 3: PROBLEM 2 Debt/Equity Ratio Return on Assets Total Equity 0.65 9.80% $850,000 Equity Multiplier = Return on Equity = Net Income = CHAPTER 3: PROBLEM 6 ROE Payout Ratio Retention Ratio Sustainable Growth Rate = 16% 25% (Note: You must calculate the retent te: No formula needed. Just input the correct rate from the Tax Rate column.) te: You must calculate the retention ratio first then the sustainable growth rate.)