Question

it ethical? what are the mpncalions Tor Cas ow aii slaienorder Weditn UESTIONS AND PROBLEMS Building a Balance Sheet [LO1] KCCO, Inc., has current assets of $5,300, net fixed assets of $24,900, current liabilities of $4,600, and long-term debt of $10,300 What is the value of the shareholders' equity account for this firm? How much is net working capital? Building an Income Statement [LO1] Billy's Exterminators, Inc., has sales of $817,000, costs of $343,000, depreciation expense of $51,000, interest expense of $38,000, and a tax rate of 35 percent. What is the net income for this firm? Dividends and Retained Earnings [LO1] Suppose the firm in Problem 2 paid out $95,000 in cash dividends. What is the addition to retained earnings? Per-Share Earnings and Dividends [LO1] Suppose the firm in Problem 3 had 90,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure? Calculating Taxes [LO3] The Dyrdek Co. had $267,000 in 2014 taxable income. Using the rates from Table 2.3 in the chapter, calculate the company's 2014 income taxes Tax Rates [LO3] In Problem 5, what is the average tax rate? What is the marginal 1. 2. 3. 4. 5. 6. to search 3 4 5 6 8

Answer 1

1 Value of share holders equity account Current assets Net fixed assets Current liabilites Long term debt EAT/Net Income Less dividend Addition to retained earnings 250250 95000 155250 5300 24900 4 -10300 4 share holders equity account Net working capital Current assets Current liabilites Net working capital EAT/Net Income Dividend Common stock outstanding 250250 95000 5300 Earnings per share Dividend per share 700 2.78 13 2 Income statement Sales Costs of sales EBIDTA Depreciation Interest EBT Tax @ 35% EAT/Net Income 817000 343000 474000 51000 38000 385000 134750 250250 15 16 18 19