Determine lear earnings after taxes under financing plan

Assignment Help Accounting Basics

Reference no: EM13159069

The Lear Co. has current assets of $750,000, Permanent current Assets of $400,000, fixed Assets of$500,000, a tax rate of 35%, and a long term financing rate of 9%. Lear Co. wishes to finance all fixed assets and half of its permanent current assets with long-term financing. Lear's earnings before interest and taxes are $250,000. Determine Lear's earnings after taxes under this financing plan.

Reference no: EM13159069

Questions Cloud

Does observation match predictions of international trade : The labor abundant countries of asia have experiences rapidly rising wages since those economies liberalized their international trade policies. Does this observation match the predictions of international trade theory? Explain.

Different states for the murder of the same person : Prepare a paper analyzing why, under certain circumstances, two state trials in two different states for the murder of the same person will not violate the Double Jeopardy Clause of the U.S. Constitution.

Compute the mass of the reaction mixture in the calorimeter : Calculate the mass of the reaction mixture in the calorimeter. (To do this, assume that the density of the HCl solution originally in the calorimeter can be approximated with the density of water (1.0 g/mL).

Compare and contrast thermoregulation in a bumblebee : Compare and contrast thermoregulation in a bumblebee, a tuna, a marine iguana, and a Belding ground squirrel. (Hint: your answer should include both intrinsic factors related to the animal's structure and extrinsic factors related to the environme..

Determine lear earnings after taxes under financing plan : Lear Co. wishes to finance all fixed assets and half of its permanent current assets with long-term financing. Lear's earnings before interest and taxes are $250,000. Determine Lear's earnings after taxes under this financing plan.

Calculate the change in energy of the gas : A gas expands and does P-V work on the surroundings equal to 321 J. At the same time, it absorbs 177 J of heat from the surroundings. Calculate the change in energy of the gas.

Creativity and having fun with it is strongly encouraged : Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.

How the human digestive tract processes food : Explain how the human digestive tract processes food. Include the various organs that help in digestion and absorption, and what happens to each type of food at each stage in the process.

Should we reduce or eliminate taxes : Should we reduce or eliminate taxes on corporate profits in the United States to lure more of these companies back to the U.S.?

User Account

All Pages