Q5RevenuesCost of GoodsSoldGross ProfitSelling, Generaland AdminDepreciationEBITIncome tax (35%)IncrementalEarningsCapitalPurchasesChanges to NWCYear 0 Year 1-280,000Year 2140,00 440,0000-70,00 220,0000Year 3 Year 4440,00 350.0000220,00 175,000070,000 220,00 220,0000-6400 64006400175,000640075.00 75.000 75,000 75,0000-11,40 138,60 138.60 93,6000003990 -48,5148,51032,7600-7410 90,090 90,090 60,840-5.000 -5,000 -5,000 -5,000A garage is installing a new "bubble-wash" car wash. It will promote the car wash as a fun activity for the family, and it is expected that thenovelty of this approach will boost sales in the medium term. If the cost of capital is 10%, what is the net present value (NPV) of thisproject? Show all calculations

Net present value is determined by deducting the initial investment from the current value of cash…

Answered: A garage is installing a new…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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For income tax purposes, what is the amount of gross income given the following amounts? Gross sales 4,000,000.00 Sales discounts, returns and allowances 100,000.00 Cost of sales 1,500,000.00 Itemized deductions 800,000.00 Group of answer choices P3,900,000.00 P1,600,000.00 P2,400,000.00 P1,700,000.00
This year Last year 1050 Assets Cash 1530 Marketable securities Accounts receivable Inventories Total current assets 1810 1220 2050 1770 2900 2790 8290 6830 Gross fixed assets 29480 28090 Less: Accumulated depreciation 14680 13140 Net fixed assets 14800 14950 Total assets Liabilities and Stockholders' Equity 23090 21780 Accounts payable Notes payable Accruals 1560 1540 2760 2160 190 350 Total current liabilities 4510 4050 Long-term debt Common stock Retained earnings Total stockholders' equity 5220 4970 9950 9950 3410 2810 13360 12760 Total liabilities and stockholders' equity 23090 21780
What is the corrected net income before tax for the current year? A. 4,450,000B. 5,000,000C. 5,150,000D. 5,700,000
Simple Accounting - Property Tax. Market Value Tax Policy Rate Property Tax $1,370,980.00 50.75% 4.39571 a. $3,058,413.48 O b. $29,680.17 O c. $30,584.13 d. $60,264.30
WhyRU Company usually depreciates its equipment using straight line method for accounting purposes, but for tax purposes its sum-of-the-years method. WhyRU Company acquired the equipment through purchase amounting to P2,400,000 on January 1,2018. Assume a tax rate of 30%. Useful life is 4 years. WhyRU Company made the following income in its income tax return available through reports for 2018 – P800,000; 2019 – P890,0000; 2020 – P1,200,000; 2021 – P1,500,000 There is no other differences between WhyRU's accounting income and taxable income for years 2018, 2019, 2020 and 2021 other than for the difference in depreciation for the equipment described.
What amount should be recognized by Ripple as profit from sale for the year ended December 31, 2020? *a. 1,150,800b. 1,550,800c. 400,000d. 355,080
14. Leslie Inc. has correctly determined the following information related to operations for 2018: Revenue from sales Expenses Income before income taxes P7,000,000 4,000,000 P3,000,000 In reviewing the records, you discovered the following items: During 2018, the company discovered an error in depreciation in 2017. The correction of this error, which has not been recorded, will result in an increase in depreciation for 2017 of P200,000. During 2018, the company sustained a loss of P400,000 because of flood, which destroyed its inventory. The company charged retained earnings and credited inventory for P400,000.
Net Sales COGS Depreciation EBIT Interest Taxable Income Taxes Net Income 2019 Income Statement Dividends Additions to Retained Earnings 147 647.74 3,456 1,895 235 1,326 320 1,006 211.26 794.74
Taxable income Rate $0 — $9,525 10.0% $9,526 — $38,700 12.0% $38,701 — $82,500 22.0% $82,501 — $157,500 24.0% $157,501 — $200,000 32.0% $200,001 — $500,000 35.0% $500,001 or more 37% Using the previous tax table, compute the tax liability for the individual in the scenario presented, rounding the liability to the nearest dollar. In addition, use the dropdown lists to identify the marginal tax rate and average tax rate for the individual in the scenario. Poornima’s Tax Scenario Poornima is a professional with taxable income of $81,700. What is Poornima’s total tax liability? (Note: Round your answer to the nearest cent, if necessary.) What is Poornima’s top marginal tax rate? What is Poornima's average tax rate?
Net income after taxes Income Tax Interest Expense Net Sales Cost of Goods Sold Operating Expenses What is the times interest earned? P18,000 12,000 80,000 620,000 460,000 50,000
Using accrual basis, how much is the reportable gross income in 2021? A. 8,000,000B. 9,000,000C. 11,000,000D. 12,000,000
↑ (Corporate income tax) G. R. Edwin Inc had sales of $6.09 million during the past year. The cost of goods sold amounted to $2.5 million Operating expenses totaled $2.54 million, and interest expense was $25,000. Use the corporate tax rates shown in the popup window to determine the firm's tax liability What are the firm's average and marginal tax rates? The firm's tax liability for the year is $ (Round to the nearest dollar)

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