FOR ALL PLEASE SHOW WORK AND HOW YOU WOULD INPUT INTO CALCUALTOR

1. Your company reports 20015

taxable income of $300,000. How large is the firms tax bill?

(100,250)

2. In the previous question what is the average tax rate, and the marginal tax rate? (33.42%, 39%)

3. ABC Corporation reported retained earnings of $1,250 on its year

-end 200

6 balance sheet.

During 2007, the company reported a loss of $320 in net income, and it paid out a

dividend of $200. What will retained earnings be for ABCs 200

7 year

-end balance

sheet?

(730)

4. If total assets = $900, fixed assets = $550, current liabilities = $250, equity = $175, long-term

debt = $475, and current assets is the only remaining item on the balance sheet, what is the value

of net working capital? (100)

5. Given the following income statement data, calculate net income: sales = $2,500, cost of goods

sold = $1,800, miscellaneous expenses = $200, depreciation = $150, interest expense = $

50, tax

rate = 35%. (195)

6. Based on the following information, calculate stockholders' equity: Cash = $ 5; Accounts

Payable = $22; Other Current Liabilities = $65; Accounts Receivable = $20; Inventory = $50; Net

Fixed Assets = $175; and Long-term Debt =

$40. (all the numbers are in millions) (123)

7. Alpha company is considering investing in a project that will generate $46,500 in two years

and has no other cash flows. The discount rate is 8% compounded

annually. What is the

maximum price Alpha is willing to pay for this project

today?

8. You received a $100 savings account earning 6% with annual

compounding on your 1st

birthday. How much will you have in the account on your 25th birthday if you dont withdraw

any money before then?

9. Your grandfather placed $5,000 in a trust fund for you. In 12 years the fund will be worth

$11,261. What is annual rat

e o

f return (APR)

on the trust fund with annual compounding?

10. You need $2,000 to buy a new stereo for your car. If you have $1,491 to invest at 6%

compounded

annually

, how

many years

will you have to wait to buy the stereo?

11. A firm has total debt of $4,850 and a debt

-equity ratio of 0.57. What is the value of the total

assets?

12. Russell's Deli has cash of $136, accounts receivable of $95, accounts payable of $210, and

inventory of $409.

There are no other current assets or current liabilities. What is the value of the

quick ratio?