Northern Essex Community College Tax Payment Calculations Worksheet

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alpenml

Northern Essex Community College

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Chapter 3 Problems: 2,3,12,14 (a,b,c)
Prepare cash flow statement of the integrated case in excel and turn in. (Your job is to recreate the statement of cash flow using information from income statement and balance sheet. I have loaded both statements to excel file (called 03 case format ), but left the statement of cash flow blank. All the information is based on the Integrated Case, D’Leon Inc, Part 1 (Problem 3-20 of chapter 3). In fact, the case also provides you statement of cash flow, but you need to get the numbers yourself in excel by using the numbers from income statement and balance sheet.
Submit the finished excel file as part of your homework. )

2.) INCOME STATEMENT Little Books Inc. recently reported \$3 million of net income. Its EBIT was \$6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and fill in the known values. Then divide \$3 million of net income by (1-T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.]

3.) INCOME STATEMENT Pearson Brothers recently reported an EBITDA of \$7.5 million and net income of \$1.8 million. It had \$2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

12.) STATEMENT OF CASH FLOWS W.C. Cycling had \$55,000 in cash at year-end 2014 and \$25,000 in cash at year-end 2015. The firm invested in property, plant, and equipment totaling \$250,000. Cash flow from financing activities totaled +\$170,000.

a. What was the cash flow from operating activities?

b. If accruals increased by \$25,000, receivables and inventories increased by \$100,000, and depreciation and amortization totaled \$10,000, what was the firm’s net income?

14.) Picture attached to this question. Please only answer a, b, and c.

20.) Picture attached and please use the provided excel document (instructions above) to answer this.

Questions 2, 3, 12, and 14 (a,b,c) can be answered in Microsoft Word.

Question 20 has to be answered in the ATTACHED excel file.

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Attached.

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1 03 Case model
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Chapter 3. Financial Statements, Cash Flow, and Taxes

This spreadsheet model is designed to be used in conjunction with the chapter's integrated case and the
4 related PowerPoint slide presentation.
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EXHIBITS: INPUT DATA (for D'Leon)
Table IC3.1 Balance Sheets
2015
Assets
Cash
Accounts receivable
Inventories
Total current assets
Gross fixed assets
Less: accumulated depreciation
Net fixed assets
Total assets
Liabilities and equity
Accounts payable
Notes payable
Accruals
Total current liabilities
Long-term debt
Total debt
Common stock (100,000 shares)
Retained earnings
Total common equity
Total liabilities and equity

\$

\$

\$
\$

\$

\$
\$

\$
\$

2014

7.282
632.160
1.287.360
1.926.802
1.202.950
263.160
939.790
2.866.592

\$

57.600
351.200
715.200
\$1.124.000
491.000
146.200
\$ 344.800
\$1.468.800

524.160
636.808
489.600
1.650.568
723.432
2.374.000
460.000
32.592
492.592
2.866.592

\$ 145.600
200.000
136.000
\$ 481.600
323.432
\$ 805.032
460.000
203.768
\$ 663.768
\$1.468.800

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Table IC3.2 Income Statements

G
2015

Sales
Cost of goods sold
Other expenses
Total operating exp. excl. depreciation and amortization
Depreciation and amortization
Earnings before interest and...

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