1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt o
ID: 2703466 • Letter: 1
Question
1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million, and the December 31, 2010, balance sheet showed long-term debt of $1.57 million. The 2010 income statement showed an interest expense of $93,500.
What was the firm's cash flow to creditors during 2010? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))
Calculate the company
1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million, and the December 31, 2010, balance sheet showed long-term debt of $1.57 million. The 2010 income statement showed an interest expense of $93,500.
The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million, and the December 31, 2010, balance sheet showed long-term debt of $1.57 million. The 2010 income statement showed an interest expense of $93,500. What was the firm's cash flow to creditors during 2010? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567)) 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 $283,000 in taxable income. Use the rates from Table 2.3. Calculate the company's income taxes. (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.)Explanation / Answer
1)
net cash inflow = 1570000-1395000-93500 = 81500
2)
net income = (1-.35)*(601000-257000-63000-30000) = 163150
3)
taxable income = 283000
net tax = .15*50000+.25*(75000-50000)+.34*(100000-75000)+.39*(283000-100000)
=
93620
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