Calculate the company 1. Lifeline, Inc., has sales of $601,000, costs of $257,00

Question

Calculate the company

1. Lifeline, Inc., has sales of $601,000, costs of $257,000, depreciation expense of $63,000, interest expense of $30,000, and a tax rate of 35 percent. Lifeline, Inc., has sales of $601,000, costs of $257,000, depreciation expense of $63,000, interest expense of $30,000, and a tax rate of 35 percent. What is the net income for this firm? (Do not include the dollar sign ($).) The SGS Co. had $283,000 in taxable income. Use the rates from Table 2.3. Calculate the company's income taxes.Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.) Hammett, Inc., has sales of $19,610, costs of $9,420, depreciation expense of $2,090, and interest expense of $1,580. Assume the tax rate is 30 percent. What is the operating cash flow? (Do not include the dollar sign ($).)

Explanation / Answer

1. Lifeline, Inc., has sales of $601,000, costs of $257,000, depreciation expense of $63,000, interest expense of $30,000, and a tax rate of 35 percent

2. The SGS Co. had $283,000 in taxable income. Use the rates from Table 2.3.

Income before tax = 251,000

Income Tax @ 39% = 251,000 x 39% = 97890

3. Hammett, Inc., has sales of $19,610, costs of $9,420, depreciation expense of $2,090, and interest expense of $1,580. Assume the tax rate is 30 percent.

operating cash flow = Net Income + Depreciation + Interest

= 4565 + 2090 + 1580

= 8234

Sales          601,000 costs          257,000 gros profit          344,000 Depreciation Exp            63,000 Interest Exp            30,000 Net Income before tax          251,000 Income Tax Exp.            87,850 Net Income after tax          163,150

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