Hemingway Corporation is considering expanding its operations to boost its income, but before making a final decision, it has asked you to calculate the corporate tax consequences of such a decision. Currently, Hemingway generates before-tax yearly income of $210 comma 000 and has no debt outstanding. Expanding operations would allow Hemingway to increase before-tax yearly income to $341 comma 000. Hemingway can use either cash reserves or debt to finance its expansion. If Hemingway uses debt, it will have a yearly interest expense of $75 comma 000. Create a spreadsheet to conduct a tax analysis (assume a 26% flat tax rate) for Hemingway Corporation and determine the folowing: a. What is Hemingway's current annual corporate tax liability? b. If Hemingway finances its expansion using cash reserves, what will be its new corporate tax liability? c. If Hemingway finances its expansion using debt, what will be its new corporate tax liability?
Answers: 2
Business, 22.06.2019 10:50
Jen left a job paying $75,000 per year to start her own florist shop in a building she owns. the market value of the building is $120,000. she pays $35,000 per year for flowers and other supplies, and has a bank account that pays 5 percent interest. what is the economic cost of jen's business?
Answers: 3
Business, 22.06.2019 15:30
On january 15, the end of the first biweekly pay period of the year, north companyâs payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employeesâ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north companyâs january 15 (employee) payroll expenses and liabilities.
Answers: 3
Business, 22.06.2019 16:00
Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:
Answers: 1
Business, 22.06.2019 22:00
Anheuser-busch inbev is considering you for an entry-level brand management position. you have been asked to prepare an analysis of the u.s. craft beer industry as part of the selection process. prepare a 3-5 page report that includes a description of the industryâs strategically relevant macro-environmental components, evaluates competition in the industry, assesses drivers of change and industry dynamics, and lists industry key success factors. the companyâs management also asks that you propose the basic elements of a strategic action plan that will allow the company to improve its competitive position in the market for craft beer. you must provide a heading in your report for each of the required elements of the assignment.
Answers: 3
Hemingway Corporation is considering expanding its operations to boost its income, but before making...
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