BALANCE SHEET AND RATE

Mar 3, 2019 1099 Words   

1．A firm has net working capital of $640. Long-term debt is $4,180, total assets are e $6,230, and fixed assets are $3,910. What is the amount of the total liabilities?

Current assets:

6230-3910=2320

Current liabilities:

6230-39102320-640=1680

Total liabilities: 1680+4180=5860

2. Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net new equity is $500. The tax rate is 35 percent. Sales are $15,900 and depreciation is $680. What are the earnings before interest and taxes?

Net Income:

75+418=493

75+418493/ (1-0.35) =758

Earnings before interest and taxes= 758.46+511= 1269

3. Winston Industries had sales of $843,800 and costs of $609,900. The firm paid $38,200 in interest and $18,000 in dividends. It also increased retained earnings by $62,138 for the year. The depreciation was $76,400. What is the average tax rate?

Net Income: