Winston Industries had sales of $843,800 and costs of $609,900. The firm paid $38,200 in interest and $18,000 in dividends

Given the tax rates as shown, what is the average tax rate for a firm with taxable income of $311,360?        A.  28.25 percent B.  31.09 percent C.  33.62 percent D.  35.48 percent E.  39.00 percent Tax = .15($50,000) + .25($25,000) + .34($25,000) + .39($211,360) = $104,680.40 Average tax rate = $104,680.40/$311,360 = 33.62 percent

57.

The tax rates are as shown. Nevada Mining currently has taxable income of $97,800. How much additional tax will the firm owe if taxable income increases by $21,000?        A.  $8,080 B.  $8,130 C.  $8,155 D.  $8,170 E.  $8,190 Additional tax = .34($100,000 - $97,800) + .39($97,800 + $21,000 - $100,000) = $8,080

58.

Winston Industries had sales of $843,800 and costs of $609,900. The firm paid $38,200 in interest and $18,000 in dividends. It also increased retained earnings by $62,138 for the year. The depreciation was $76,400. What is the average tax rate?    A.  32.83 percent B.  33.33 percent C.  38.17 percent D.  43.39 percent E.  48.87 percent Earnings before taxes = $843,800 - $609,900 - $76,400 - $38,200 = $119,300 Net income = $18,000 + $62,138 = $80,138 Taxes = $119,300 - $80,138 = $39,162 Tax rate = $39,162/$119,300 = 32.83 percent

59.

Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?    A.  $129,152 B.  $171,852 C.  $179,924 D.  $281,417 E.  $309,076 Earnings before interest and taxes = $1,349,800 - $903,500 - $42,700 = $403,600 Tax = $403,600 × .34 = $137,224 Operating cash flow = $403,600 + $42,700 - $137,224 = $309,076