Calculate the net income, Board Bagels, a small cafe in

Calculate the net income

Assignment Help Corporate Finance

Reference no: EM1347554

11. Board Bagels, a small cafe in downtown Pittsburgh, had a net sales of $230,000 for the most recent fiscal year, 65% of which were eaten up by its costs. The firm had some baking equipment that cost $45,000 with a salvage value estimated at $5,000 and was being depreciated over 10 years using the straight-line method. Interest on accumulated loans amounted to $12,000 and the cafe had a net tax rate of 25%. What was it's net income?
A. $48,375
B. $17,625
C. $48,000
D. $160,500

12. Old Company paid taxes of $ 20,000 and purchased equipment worth $ 25,000 during the year that ended June 30, 2008. The firm had net income of $400,000 during the year ended June 30, 2008. After paying out $25,000 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $875,000, what was the level of retained earnings on its balance sheet on July 1, 2007?
a) $ 480,000
b) $ 520,000
c) $ 920,000
d) $ 500,000

13. Johnson Corporation has announced that its net income for the year ended June 30, 2008, is $1,000,000. The company had an EBITDA of $ 4,900,000, and its depreciation and amortization expense was equal to $1,500,000. The companyÃ?¢â?¬â?¢s tax rate is 34 percent. What is the amount of interest expense for the Corporation?
a) $ 1,590,749
b) $ 1,884, 849
c) $ 880, 659
d) $ 1,489,500

14. A market value balance sheet can provide:
a) management with a more exact statement of the firmÃ?¢â?¬â?¢s net income
b) investor's with a better understanding of the cost of the firmÃ?¢â?¬â?¢s assets
c) misleading information on the earnings per share of most firms
d) better information on the stockholder's equity

15. Common-size financial statements include:
I. balance sheets with contents divided by total assets
II. income statements with contents divided by net sales or revenues
III. cash flow statements with contents divided by depreciation and amortization

A. I only
B. II only
C. I and II

Reference no: EM1347554

Questions Cloud

Describing status of 3g and 4g network technologies : Describe in scholarly detail status of 3G and 4G network technologies and even challenge yourself to find out any research on future of 5G technology.

Illustrate fiscal and monetary policies would you recommend : Illustrate what fiscal and monetary policies would you recommend in order to close a recessionary gap. Would you recommend what expansionary polices.

Employee empowerment and motivation : What are the pros from the perspective of the supervisor and how does employee empowerment relate to whether management believes in theory X or Y style of management and the decision-making process?

Drives behind work motivation : explain what the four drives that underlie motivation are according to the authors and show these needs in length and provide examples for each

Calculate the net income : Board Bagels, a small cafe in downtown Pittsburgh, had a net sales of dollar 230,000 for the most recent fiscal year, 65 percent of which were eaten up by its expenses.

What would be the least energy of the electron : what is the maximum weight of the crate that the system can support? What is the angle needed for equilibrium.

Google''s receptiveness to change : Assistance with exploring Google Inc.'s culture. I want to discuss such topics as Google's receptiveness to change,

Internal events by creatinguml one state diagram : Which event driven modeling can be used to illustrate how system responds to external and/or internal events by creating a UML ONE State Diagram.

Illustrate what does this say about the likelihood : Illustrate what does this say about the likelihood of our running out of resources.

User Account

All Pages