During the year, Belyk Paving Co. had sales of $2,386,000. Cost of goods sold, administrative and...

During the year, Belyk Paving Co. had sales of $2,386,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,439,000, $436,400, and $491,400, respectively. In addition, the company had an interest expense of $216,400 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is the company’s net income?

Expert Solution

Sales		2,386,000
Less:	Cost of goods sold	1,439,000
Gross profit		947,000
Less:	administrative and selling expenses	436,400
	Depreciation expense	491,400
EBIT		19,200
Less:	Interest	216,400
Income Before Income Tax (EBT)		(197,200)
Less: Income Tax@30% *		-
Net Income		(197,200)

* The company does not have any profit during the year, so no tax.

jeff jeffy answered 1 year ago

During the year, Belyk Paving Co. had sales of $2,392,000. Cost of goods sold, administrative and...

During the year, Belyk Paving Co. had sales of $2,392,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,433,000, $435,800, and $490,800, respectively. In addition, the company had an interest expense of $215,800 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is the company’s net income? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the...

During the year, Belyk Paving Co. had sales of $2,275,000. Cost of goods sold, administrative and...

During the year, Belyk Paving Co. had sales of $2,275,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,285,000, $535,000, and $420,000, respectively. In addition, the company had an interest expense of $245,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) What is Belyk Paving Company’s net income? What is Belyk Paving Company’s operating cash flow? Determine Belyk Paving Company’s Cash Coverage Ratio, Times...

During the year, Belyk Paving Co. had sales of $2,395,000. Cost of goods sold, administrative and...

During the year, Belyk Paving Co. had sales of $2,395,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,325,000, $615,000, and $444,000, respectively. In addition, the company had an interest expense of $269,000 and a tax rate of 23 percent. The company paid out $394,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax...

During the year, Belyk Paving Co. had sales of $2,390,000. Cost of goods sold, administrative and...

During the year, Belyk Paving Co. had sales of $2,390,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,435,000, $436,000, and $491,000, respectively. In addition, the company had an interest expense of $216,000 and a tax rate of 30 percent (ignore any tax loss carryback or carryforward provisions.). The company paid out $393,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock...

During the year, Belyk Paving Co. had sales of $2,387,000. Cost of goods sold, administrative and...

During the year, Belyk Paving Co. had sales of $2,387,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,438,000, $436,300, and $491,300, respectively. In addition, the company had an interest expense of $216,300 and a tax rate of 40 percent (ignore any tax loss carryback or carryforward provisions.). The company paid out $384,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock...

During 2009, Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling...

During 2009, Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $574,000, $89,000, and $128,000, respectively. In addition, the company had an interest expense of $100,000 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $19,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

During 2015, Rainbow Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling...

During 2015, Rainbow Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $150,000, respectively. In addition, the company had an interest expense of $89,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Suppose the company paid out $53,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

During 2019, Rainbow Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling...

During 2019, Rainbow Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $540,000, $85,000, and $100,000, respectively. In addition, the company had an interest expense of $54,000 and a tax rate of 21 percent. (Assume that interest is fully deductible.) Suppose the company paid out $66,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year,...

During 2018, Raines Umbrella Corp. had sales of $745,000. Cost of goods sold, administrative and selling...

During 2018, Raines Umbrella Corp. had sales of $745,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $578,000, $87,000, and $134,000, respectively. In addition, the company had an interest expense of $102,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $24,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling...

During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $454,000, $99,000, and $144,500, respectively. In addition, the company had an interest expense of $72,200 and a tax rate of 24 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.) b....

Question