Solved by verified expert :Question 1Calculate the shareholders’ equity from the given information:Cash$2,155A/R$3,142Notes Payable$382Long-term Debt$8,232Net Fixed Assets$18,091A/P$2,146Inventory$5,096Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 2Based on the following information, Compute the transfer to Retained Earnings for Year 2006. Assume a tax rate of 34%.Year 2006Sales$4800Depreciation577COGS1582Other Expenses580Interest769Cash2107A/R2789Short-term Notes Payable407Long-term Debt7056Net Fixed Assets17669A/P2213Inventory4959Dividends612Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 3ABC’s EBIT is $6 million. The depreciation expense is $0.5 million and interest expense is $0.5 million. The corporate tax rate is 30%. The company has 7 million in operating current assets and $3 million operating current liabilities. It has $12 million in net plant and equipment. The after-tax cost of capital (WACC) is 12%. Assume that the only non-cash item is depreciation. The total net operating capital last year was $15 million.What was the company’s economic value added (EVA)?Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $1,200,000.345 then enter as(NNN) NNN-NNNN35 in the answer box.1 pointsQuestion 4ABC company had a taxable income of $195,731 from operations after all operating costs but before interest charges of $51,025, dividends received of $71,468, dividends paid of $5,000, and . What is the firm’s income tax liability?Hint: use the tax table to compute taxes. tax 36 %Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 5ABC recently reported $44,852 of sales, $13,789of operating costs other than depreciation, and $5,147 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 8% interest rate. How much was the firm’s taxable income, or earnings before taxes (EBT)?Hint: Interest rate = Bonds outstanding * interest rateNote: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 6ABC company had a taxable income of $510,902 from operations after all operating costs but before interest charges of $56,862, dividends received of $40,361, dividends paid of $10,000, and income taxes. What is the firm’s income tax liability?Hint: use the tax table to compute taxes.Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 7The dividend payments are tax-deductible.TrueFalse1 pointsQuestion 8ABC company had a taxable income of $583,895 from operations after all operating costs but before interest charges of $55,955, dividends received of $45,959, dividends paid of $10,000, and income taxes. What is the firm’s after-tax income?Hint: first use the tax table to compute taxes before calculating the after-tax income.Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
