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 nonrecreational $20 million 2-7 Corpo compute value 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 getting even Mini fictitious character: a. Why is corporal pay important to all managers? Because favored companies have skilled good deal at all levels inside(a) the company, strong relationships with groups outside the company and luxuriant champ ionship. 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, usually have by one person, who haves all the licenses.

Some advantages argon it is liberal and inexpensive to form, few government regulations and income is not down to corporate taxation. on that point argon 3 limitations: difficult to obtain capital, ain liability, and life of proprietorship is limited to the life of its founder. federation is when 2 or more people or entities d irect a non-corporate business for profit. T! he advantages and disadvantages be 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 self-possession interest and limited liability. Some disadvantages are corporate meshwork 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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