| UNIT 1: TEXTBOOK PROBLEMS |
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| CHAPTER 2: PROBLEM 1 |
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| Current Assets | $6,800 |
| Net Fixed Assets | $29,400 |
| Current Liabilities | $5,400 |
| Long-Term Debt | $13,100 |
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| Shareholder Equity = |
| Net Working Capital = |
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| CHAPTER 2: PROBLEM 2 |
| | Income Statement |
| Sales | $528,600 |
| Costs | $264,400 |
| Depreciation Expense | $41,700 |
| EBIT |
| Interest Expense | $20,700 |
| EBT |
| Taxes @ 35% |
| Net Income = |
| Cash Dividends | $27,000 |
| Addition to Retained Earnings = |
| Tax Rate = | 35% |
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| CHAPTER 2: PROBLEM 4 |
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| Taxable Income | $328,500 |
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| Table 2.3 |
| Taxable Income | Taxable Income (cont) | Tax Rate |
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| 0 | 50,000 | 15% |
| 50,001 | 75,000 | 25% |
| 75,001 | 100,000 | 34% |
| 100,001 | 335,000 | 39% |
| 335,001 | 10,000,000 | 34% |
| 10,000,001 | 15,000,000 | 35% |
| 15,000,001 | 18,333,333 | 38% |
| 18,333,334 | + | 35% |
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| Income Taxes = |
| Average Tax Rate = |
| Marginal Tax Rate = | | (Note: No formula needed. Just input the correct rate from the Tax Rate column) |
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| CHAPTER 2: PROBLEM 5 |
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| Sales | $30,700 |
| Costs | $11,100 |
| Depreciation Expense | $2,100 |
| EBIT |
| Interest Expense | $1,140 |
| EBT |
| Taxes @ 40% |
| Net Income |
| Tax Rate | 40% |
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| Operating Cash Flow = |
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| CHAPTER 3: PROBLEM 2 |
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| Debt/Equity Ratio | 0.75 |
| Return on Assets | 8.60% |
| Total Equity | $975,000 |
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| Equity Multiplier = |
| Return on Equity = |
| Net Income = |
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| CHAPTER 3: PROBLEM 6 |
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| ROE | 15% |
| Payout Ratio | 25% |
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| Retention Ratio | | (Note: You must calculate the retention ratio first then the sustainable growth rate) |
| Sustainable Growth Rate = |
Burkett86
cf_template_textbook_problems_Unit_1.xls
