# Generally Accepted Accounting Principles and Net Fixed Assets

Pages: 2 (397 words) Published: February 15, 2013
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...