5. Tax rate = 35% 2012 2013 2014 Taxable income 2,000 2,500 -1,500 Taxes paid -7
ID: 2655618 • Letter: 5
Question
5.
Tax rate = 35%
2012
2013
2014
Taxable income
2,000
2,500
-1,500
Taxes paid
-700
-875
0
How much of a tax refund will be received in 2012 and 2013?
6. Net income is 1,024. Interest expense totals 171, while EBITDA is 2,318. If taxes are 563, what is depreciation and amortization (DA) ?
7.Beginning equity for a company is 188, and ending equity is 200. The company sold stock in the amount of 128, and net income is 83. Given this information, how much did the company pay in dividends this year?
8.A business purchases depreciable equipment for 191, and sells it a few years later for 166. At the time of the sale, accumulated depreciation totals 106. If the company's tax rate is 39, what is the total after tax cash flow that will result from selling this asset?
Tax rate = 35%
2012
2013
2014
Taxable income
2,000
2,500
-1,500
Taxes paid
-700
-875
0
Explanation / Answer
Answer:6
Answer:7 Dividend paid=Ending equity-Begining equity-net income+Sale of stock
=200-188-83+128
=57
Answer:8 Tax=[166- (191-106)]*39%=31.59
Total after tax cash flow=[166- (191-106)]-31.59
=49.41
Answer:8
Particulars Amount ($) EBITDA 2318 LESS: Interest expense 171 Less: taxes 563 Less: Net income 1024 Depreciation and amortization 560Related Questions
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