The difference between LIFO and FIFO valuation methods is $2,500. Given that the corporation pays a 35% tax rate, what is the savings to the organization to use the LIFO method of accounting.
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The difference between LIFO and FIFO valuation methods is $2,500. Given that the corporation pays a 35% tax rate, what is the savings to the organization to use the LIFO method of accounting.
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- Fill in the missing numbers for the following statement of comprehensive income. (Input all amounts as positive values. Omit $ sign in your response.) Sales Costs Depreciation EBIT Taxes (34%) Net income Calculate the OCF. OCF $ What is the CCA tax shield? CCA tax shield 733,500 503,300 89,400Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales 2$ 659,000 Costs 420,100 Depreciation 98,900 EBIT Taxes (23%) Net income b. Calculate the OCF. (Do not round intermediate calculations.) What is the depreciation tax shield? (Do not round intermediate calculations.) C. b. OCF с. Depreciation tax shield3. (a) Debt is 20% of assets for an organization. Total assets are$10,000. The tax rate is 40%. The interest rate is 10%. EBIT profit is$1000. What is the after taxes and interest profit? What is the ROE?Profit_______________ROE________________(b) If in 1(a) debt is increased to 50% of assets, what will be the aftertaxes and interest profit and the ROE?Profit__________________ROE___________________
- A Non-VAT business reported the following:Sales P2,500,000Cost of Sales P1,000,000Purchases, inclusive of VAT P560,000How much is the amount of business tax payable?1. (a) An organization has $2 million in assets and an earnings beforeinterest and taxes (EBIT) profit of $500,000. The interest rate is 12%and the tax rate is 35%. It has financed its assets with no debt. Whatis its after interest and taxes profit? What is the ROE?Profit__________________ROE___________________(b) If the same organization in 1(a) now finances assets with 40%debt, what is the new after taxes and interest profit and the newROE?Profit __________________ROE____________________2. If the quick assets of the company amounted to P90,000, and the quick ratio is 9, how much is the current liabilities of the entity? *a. P810,000b. P89,997c. P90,009d. P10,000 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is 30%, how much is the profit margin ratio? *a. 0.40b. 0.28c. 2.5d. 3.57 8. Interest expense for the year amounted to P90,000. Income tax expense is P100,000. If net income after tax is P620,000, what is the times interest earned ratio? *a. 6.2b. 9c. 6.888d. P720,000
- Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was$13 million, and its tax rate was 40%. What was its interest expense? (Hint:Write out the headings for an income statement and then fill in the knownvalues. Then divide $6 million net income by 1 - T = 0.6 to find the pretax income. The difference between EBIT and taxable income must be theinterest expense. Use this procedure to work some of the other problems.)Little Books, Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? (Hint: write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by (1-T) to find pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to work some of the other problems.)Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales Costs Depreciation EBIT Taxes (25%) Net income $ 663,200 425,000 101,000 a. Calculate the OCF. (Do not round intermediate calculations.) b. What is the depreciation tax shield? (Do not round intermediate calculations.) a. OCF b. Depreciation tax shield
- 2-3 Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million net income by 1−T=0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this procedure to work some of the other problems.) $6,000,000 net income/(1- 40%) $6,000,000 net income/(0.6) =10,000 million $13,000,000-$10,000,000=$3,000,000 Interest Expense 2-12 Using Rhodes Corporation’s financial statements (shown below), answer the following questions. What is the net operating profit after taxes (NOPAT) for 2013? NOPAT= EBIT (1- Tax Rate) $1260(1-.4) $1260(0.6) NOPAT=756 What are the amounts of net operating working capital for both years? NOWC= operating current assets-operating current liabilities NOWC12=(550,000,000 + 2,750, 000,000 + 1,650,000,000)-…Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales 2$ 665,000 Costs 427,100 Depreciation 101,900 EBIT Taxes (23%) Net income Calculate the OCF. (Do not round intermediate calculations.) What is the depreciation tax shield? (Do not round intermediate calculations.) 1 OCF Depreciation tax shield21. A non-VAT business reported the following: Sales Cost of Sales Purchases, inclusive of VAT P2,500,000 1,000,000 560,000 How much is the amount of business tax payable? (NO Solutions)