Business, 22.09.2020 14:01 Dinojacob

Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000. 1. What is Builtrite’s taxable income?

a. $257,000
b. $242,000
c. $280,000
d. $266,000

2. Based on their taxable income, what is Builtrite’s tax liability?

$83,480
$92,450
$77,630
$86,990

3. If we add to our problem that Builtrite also had $10,000 in interest expense, which of the following statements is correct (assuming the same marginal tax rate of 39%)?

a. Taxable income would increase by $10,000
b. Taxable income would decrease by $10,000.
c. Taxable income would decrease by $6,100.
d. Taxable income would increase by $6,100

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 11:40

On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.

Answers: 1

Answer

Business, 22.06.2019 17:30

Communication comes in various forms. which of the following is considered an old form of communication? a) e-mail b) letter c) skype d) texting

Answers: 2

Answer

Business, 22.06.2019 21:40

Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?

Answers: 2

Answer

Business, 23.06.2019 02:30

Consider the following condensed financial statements of money freedom comma inc. the company's target rate of return is 30%: (click the icon to view the comparative balance sheet.) (click the icon to view the income statement.) requirements 1. calculate the company's roi. round all of your answers to four decimal places. 2. calculate the company's profit margin ratio. interpret your results. 3. calculate the company's asset turnover ratio. interpret your results. 4. use the expanded roi formula to confirm your results from requirement 1. interpret your results. 5. calculate the company's ri. interpret your results. requirement 1. calculate the company's roi. round all of your answers to four decimal places. begin by selecting the formula to calculate return on investment (roi), and then enter the amounts to calculate the company's roi. (round your calculations to four decimal places and enter your answer as a percent, x.xx%)

Answers: 1

Answer

You know the right answer?

Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculate...

Questions