Question 1
Last year, your company had sales of $3,988,331, cost of goods sold of $2,304,846 million and operating expenses amounting to $852,565. The firm had $117,298 in depreciation expense. In addition, the firm had $625,000 in 8% coupon bonds, received $30,000 in dividend income, and sold property for $10,000 capital loss. What was the firm's tax payment? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND AT THE END. TYPE IN YOUR NUMERICAL ANSWER. DO NOT ENTER THE $ SYMBOL. IF YOUR ANSWER IS 1,000,000.2456 FOR EXAMPLE, JUST ENTER 1,000,000.
Question 2
Last year, your company had sales of $16,441,326. The firm's costs of goods sold amounted to 60% of sales. The firm also paid cash operating expenses of $1,000,000, and had $183,269 in depreciation expense. The firm had $450,000 in 9% coupon bonds outstanding and paid $40,000 in dividends to its common stockholders. Also, the firm received $100,000 in dividend income from its holdings of other common stocks. Compute the corporation's taxable income i.e. earnings before taxes. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND TO THE NEAREST WHOLE NUMBER AT THE END. DO NOT ENTER THE $ SIGN SYMBOL..i.e. if your answer is 1,000,000.2456 enter it as 1,000,000.
