Generally Accepted Accounting Principles and Net Fixed Assets
Problems –Financial Statement, Taxes and Cash flows: 1) Penguin Pucks Inc has current assets of $5100, net fixed assets of 23800 current liabilities of $4300 and long term debt of $7400.What is the value of the shareholder equity account for this firm ? How much is the net working capital? 2) Papa Roach Exterminators Inc has sales of $586000, costs of $247000, depreciation expense of$43000, interest expense of $32000 and a tax rate of 35 per cent .What is the net income for this firm? 3) The Renata Co had $236,000 in 2009 taxable income .Using the tax table given below; calculate the company’s 2009 income tax? What is the average tax rate ? What is the marginal tax rate? Taxable Income | Tax Rate | $ 0-50,000 | 15% | 50,001-75,000 | 25 | 75001-100,000 | 34 | 100,001-335,000 | 39 | 335,001-10,000,000 | 34 | 10,000,001-15,000,000 | 35 | 15,000,001-18,333,333 | 38 | 18,333,334+ | 35 |
4) Given the following information for Rosato Pizza Co, calculate the depreciation expenses: sales =$41,000; costs=$19500 ; addition to retained earnings=$5100; dividends paid=$1500; interest expense =$4500; tax rate =35%. 5) Prepare a 2011 balance sheet for Bertinelli Corp based on the following information: cash =$195000; patents and copy rights =$780,000; accounts payable =$405,000 ; accounts receivables =$137,000 tangible fixed assets =$2,800,000; inventory=$264,000 ; notes payable =$160,000; accumulated retained earnings=$1934,000; long term debt =$1195300. 6) DAHLIA Industries had the following operating results for 2011 ; sales =$22800; cost of goods sold=$16050 ; depreciation expense =$4050; interest expense =$1830; dividends paid=$1300.At the beginning of the year , net fixed assets were $13650, current assets were $4800 , and current liabilities were $2700.At the end of the year ,net fixed assets were $16800, current assets were $5930 and current liabilities were $3150.The tax rate for 2011 was 34 per cent . a) What is the net
4) Given the following information for Rosato Pizza Co, calculate the depreciation expenses: sales =$41,000; costs=$19500 ; addition to retained earnings=$5100; dividends paid=$1500; interest expense =$4500; tax rate =35%. 5) Prepare a 2011 balance sheet for Bertinelli Corp based on the following information: cash =$195000; patents and copy rights =$780,000; accounts payable =$405,000 ; accounts receivables =$137,000 tangible fixed assets =$2,800,000; inventory=$264,000 ; notes payable =$160,000; accumulated retained earnings=$1934,000; long term debt =$1195300. 6) DAHLIA Industries had the following operating results for 2011 ; sales =$22800; cost of goods sold=$16050 ; depreciation expense =$4050; interest expense =$1830; dividends paid=$1300.At the beginning of the year , net fixed assets were $13650, current assets were $4800 , and current liabilities were $2700.At the end of the year ,net fixed assets were $16800, current assets were $5930 and current liabilities were $3150.The tax rate for 2011 was 34 per cent . a) What is the net