Fi515 Week 1

Problems 2-6 Net Income.$50 millionCurrent Year contain Earning 810Million LessPrevious Retained Earning- 780million RE..$810 Million 30millionless(prenominal)Net Income50million Previous RE..$780 million Left for Dividends paid20million Dividends give $20 million 2-7 Corpo compute valuate Liability b atomic number 18(a) tax rate=34% nonexempt income 365000 Avg Tax rate=124100/365000=34% Interest 50000 afterwards Tax Income=240900 Dividends recd 15000Net Income=After tax income- evoke-dividends paid+ dividends recd Dividends paid 25000=180900 Income Taxes ={113900+[.34*(365000-335000)]}=124100 2-9 Corporate After-Tax break down Mini fictitious character: a. Why is corporal pay important to all managers? Because favored companies have skilled the great unwashed at all levels inside(a) the company, strong relationships with groups outside the company and adequate champions hip. Companies need funding to execute their plans ans support their operations. b. organisational forms from plumpup to corporation, advantages and disadvantages? Companies start out normally as a proprietorship, commonly have by one person, who sticks all the licenses.

Some advantages atomic number 18 it is liberal and inexpensive to form, few government regulations and income is not cause to corporate taxation. there be 3 limitations: difficult to obtain capital, ain liability, and life of proprietorship is limited to the life of its founder. confederation is when 2 or more people or entitie s canalize a non-corporate business for pro! fit. The advantages and disadvantages atomic number 18 the same as those of proprietorship. Corporations are wakeless entities created under state laws and it is separate and distinct from its owners and managers. There are advantages such as unlimited life, easy transferability of monomania interest and limited liability. Some disadvantages are corporate hire are subject to double taxation and there are needs...If you motivation to get a full essay, order it on our website: OrderCustomPaper.com

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