• Complete Chapter 2 problem,
    2-8, p. 86
  • Complete Chapter 3 problem,
    3-6, p. 122
  • Complete Chapter 3 problem,
    3-11, p. 122-123

2-8) The Wendt Corporation had $10.5 million of taxable income.

A. What
is the company’s federal income tax bill for the year?

B. Assume
the firm receives an additional $1 million of interest income from somebonds it
owns. What is the tax on this interest income?

C. Now
assume that Wendt does not receive the interest income but does receive
anadditional $1 million as dividends on some stock it owns. What is the tax on
this dividend income?

3-6) Gardial&
Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to 20%.

A. What
is the company’s total assets turnover?

B. What
is the firm’s equity multiplier?

3-11) Complete the
balance sheet and sales information in the table that follows for J. White

Industries using the
following financial data:

Total assets turnover:

Gross profit margin on
sales: (Sales %u2013 Cost of goods sold)/Sales = 25%

liabilities-to-assets ratio: 40%

Quick ratio: 0.80

Days sales outstanding
(based on 365-day year): 36.5 days

Inventory turnover
ratio: 3.75

Partial Income
Statement Information

Sales 600,000

Cost of goods
sold 450,000