The Wendt Corporation had $10.5 million of taxable income.

The Wendt Corporation had $10.5 million of taxable income.

1. The Wendt Corporation had $10.5 million of taxable income.a. What is the companys federal income tax bill for the year?b. Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the tax on this interest income?c. Now assume that Wendt does not receive the interest income but does receive an additional $1 million as dividends on some stock it owns. What is the tax on this dividend income?2. Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to20%. What is the companys total assets turnover? What is the firms equity multiplier?3. Complete the balance sheet and sales information in the table that follows for J. WhiteIndustries using the following financial data:Total assets turnover: 1.5Gross profit margin on sales: (Sales Cost of goods sold)/Sales = 25%Total liabilities-to-assets ratio: 40%Quick ratio: 0.80 Days sales outstanding (based on 365-day year): 36.5 daysInventory turnover ratio: 3.75Partial Income Statement InformationSales Cost of goods sold Balance SheetCash Accounts payable Accounts receivable Long-term debt 50,000Inventories Common stock Fixed assets Retained earnings 100,000Total assets $400,000 Total liabilities and equity


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