4 The Wendt corporation had $10.5 million of taxable income. a. What is the comp

Question

4 The Wendt corporation had $10.5 million of taxable income. a. What is the company's federal income tax bill for the year? b. Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the tax on this interest income? c. Now assume that Wendt does not receive the interest income but does receive an aditional $1 million as dividends on some stock it owns. What is the tax on this dividend income? Green Sisters has a DSO of 20 days. The company's average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Reno Revolvers has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is the P/E Ratio? 6 Based on the information provided below, calculate Haslam's profit margin. Suppose half its liabilities are in the form of debt. Calculate the deb-to-assets ratio. Sales/total assets 1.2 Return on assets (ROA) 4% Return on equity (ROE) 7%

Explanation / Answer

Here are many questions, i am answering one question out these 7 or 8 questions

5.

DSO =   Account Receivables * 365 / Net Credit Sales

Net credit sales = 365 * 20000 = $7300000

20 = Account receivables * 365 / 7300000

Account Receivables = 7300000 * 20 / 365 = $400000

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