+1 862 207 3288 Question 1
Martin Corporation had a net operating income of $374,00. It also had $20,000 of interest expense and $25,000 of interest income during 2009.
A) How much income tax must a corporation pay?
B) What is the marginal tax rate?
C) What is the average tax rate?
Question 2
The Green coprporation had net income income from operations of $150,000 in 2010. This income including $35,000 in dividend income on small holdings of stocks of various major publicly held corporations.
A) How much income tax must a corporation pay?
B) What is the marginal tax rate?
C) What is the average tax rate?
List below are a number of financial statement captions.Indicate in the spaces to the right of each caption (1) the category of each item, and (2) the financial stetament(s) on which the item can usually be found.
Category Financial Statement
Asset A Balance sheet BS
Liability L Income statement IB
Owner’s Equity OE Statement of changes in owner’s equity
Revenue R
Expense E
Gain G
Loss LS
Accounts receivable —————————
Cost of goods sold —————————–
Retained earnings ——————————–
Interest income ———————————–
Loss on sale of building ————————–
Notes payable ——————
Additional paid in capital ———————
Equipment ——————————-
Short-term debt ——————
General expense ————–
2- The balance sheet is a financial statement that measures the flow of founds into and out of vatious accounts over time, while the income statement measures the firm’s financial position at a point in time.
a-true
b-false
3-The retained earnings is the actual cash that the firm has generated through operations less the cash that has been paid out to stockholders as dividends. Retained earnings are kept in cash or near cash accounts and, thus, these cash accounts, when adde together, will always be equal to the firm’s total retained earnings.
1-true
2-false
3- To estimate the cash flow from operations,depreciation must be added back to net income because it is a non-cash charge that has been deducted from revenue
1- true
2-false
