Financial Statements, Cash Flow, and Taxes3

Financial Statements, Cash Flow, and Taxes3 - Net income...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 13 of 44 Pages Net income available to common stockholders $ 231.0 $ 189.0 Common dividends $ 181.0 $ 13.2 Balance Sheet Year: 2002 Year: 2001 Assets: Cash and marketable securities $ 36.0 $ 30.0 Accounts receivable 540.0 450.0 Inventories 540.0 600.0 Total current assets $1,116.0 $1,080.0 Net plant and equipment 900.0 750.0 Total assets $2,016.0 $1,830.0 Liabilities and equity: Accounts payable $ 324.0 $ 270.0 Notes payable 201.0 155.0 Accruals 216.0 180.0 Total current liabilities $ 741.0 $ 605.0 Long-term bonds 450.0 450.0 Total debt $1,191.0 $1,055.0 Common stock (50 million shares) 150.0 150.0 Retained earnings 675.0 625.0 Total common equity $ 825.0 $ 775.0 Total liabilities and equity $2,016.0 $1,830.0 Determine your company's free cash flow for 2002. A. $142 B. $227 C. $255 D. $174 E. $289 15. Your company recently realized $130,000 in operating income. The company had interest income of $30,000 and realized $70,000 in dividend income. The company's interest expense was $50,000. Taxable Income Tax on Base of Bracket Percentage on Excess Above Base Up to $50,000 $ 0 15% $50,000-$75,000 7,500 25 $75,000-$100,000 13,750 34 $100,000-$335,000 22,250 39 $335,000-$10,000,000 113,900 34 $10,000,000-$15,000,000 3,400,000 35 $15,000,000-$18,333,333 5,150,000 38 Over $18,333,333
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Financial Statements, Cash Flow, and Taxes3 - Net income...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online