# Fi515 Week one particular

Issue (2-6)

In its most current financial assertions, Newhouse Inc. reported \$50 million of net income and \$810 mil of stored earnings. The prior retained revenue were \$780 million. Just how much in returns was paid out to investors during the year? Fresh Balance stored earning sama dengan Previous Equilibrium retained earning + net income + Gross paid Dividend paid sama dengan Previous Balance retained earning + net gain - Fresh Balance stored earning Dividend = \$780 million & \$50 million - \$810 million

sama dengan \$830 mil - \$810 million

sama dengan \$20, 1000, 000

Issue (2-7)

The Talley Corporation had a taxable income of \$365, 000 from businesses after all functioning costs when (1) interest charges of \$50, 000, (2) payouts received of \$15, 1000, (3) dividends paid of \$25, 000, and (4) income taxes. a)What are the business income tax legal responsibility and its after-tax income? b)What are the company's marginal and average tax rates on taxable cash flow? For a corporation, 70% of dividends received are omitted from taxation; so taxable dividends will be calculated with the remained 30% Company's Duty Liability:

Taxable operating profits \$ 365, 000

Taxable interest (\$ 50, 000)

Taxable dividend received dollar 4, five-hundred

15, 000 * (1 вЂ“ zero. 70)

Total taxable income \$ 319, 500

The marginal level for this firm is 39%

The nontaxable dividends will be: \$15, 1000 * 0. 7 = \$ 10, 500

The tax is:

Tax The liability = bucks 22, 250 + (319, 500 вЂ“ 100, 000)*0. 39

= dollar 107, 855

After Tax-income:

Taxable cash flow \$ 319, 500

Taxable (\$ 107, 855)

Non-taxable dividend

Received 15, 000 * (0. 70) \$ 12, 500

Net income \$ 222, 145

Normal tax charge = Taxable interest salary / Taxable operating salary = 107855 / 319500 = 0. 337574 *100% = thirty-three. 7574 sama dengan 33. seventy six %

Average tax charge is 33. 8 %

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Problem (2-9)

The Shrieves Corporation has \$10,50, 000 that this plans to...