ZuoTi.Pro
Question

Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at...

Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000

Builtrite has $7,000 in interest expense, how much does this interest expense cost Builtrite after taxes?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Interest Expenses after taxes = Interest Expenses (1-tax rate)

=$7000(1-0.39)

=$4,270.

Thanks

Let me know if you have any doubt .

0 0
Add a comment
Know the answer?
Add Answer to:
Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at...

    Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 What is Builtrite's taxable income?

  • Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at...

    Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Based on the above information, answer the following 4 questions: What...

  • Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at...

    Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Based on the above information, answer the following 5 questions: 1.What...

  • Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at...

    Builtrite had sales of $700,000 and COGS of $290,000. In addition, operating expenses were calculated at 25% of sales. Interest expense was based on $100,000 of bonds outstanding with an interest rate of 7%. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $45,000 Based on the above information, answer the following 4 questions: 1....

  • Given: Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated...

    Given: Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $55,000 was realized during the year along with a capital loss of $70,000 1.What is Builtrite’s taxable income? 2.Based on their taxable income, what is Builtrite’s tax liability 3. If we add to our problem that Builtrite also...

  • Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at...

    Builtrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000 Based on the above information answer questions 3 and 4 I think I got 1 and 2 correct. Question 1 2 pts What is Builtrite's taxable...

  • Income statement 2014 $1,500,000 750,000 Sales COGS Gross profits Operating Expenses Selling expenses General admin. expenses...

    Income statement 2014 $1,500,000 750,000 Sales COGS Gross profits Operating Expenses Selling expenses General admin. expenses Lease expenses Depreciation expense total operating expenses 100,000 50,000 10,000 40,000 Operating profits Interest 20,000 Net profits before taxes Taxes Net profits after taxes Preferred dividends 10,000 Earnings available for common stockholders Tax table Range of taxable income 100,000-335,000 335,000-10,000,000 Tax calculation 22,250 + (39% x amount over 100,000) 113,900 + ( 34% x amount over 335,000)

  • G Force at the end of June 2013 had sales of $700,000, costs of $250,000, expenses...

    G Force at the end of June 2013 had sales of $700,000, costs of $250,000, expenses of $100,000 and deprecation of $70,000, interest of $88,000 and taxes at 30%. Dividends paid was $10,500. No new long-term debt was issued, however, $4000 was issued in new equity. Calculate: Create the income statement Operating cash flow Cash flow to creditors Cash flow to shareholders Addition to net working capital

  • Koffee Beans Corp. has provided the following information for the recent year. Sales $200,000, costs $100,000,...

    Koffee Beans Corp. has provided the following information for the recent year. Sales $200,000, costs $100,000, other expense $7,000; depreciation expense $15 company redeemed $8,000 in outstanding equity, and issued $7,000 in long-term debt. 000; interest expense-$8,000: taxes- $19,000, dividends $10,000. You are also told that What is this year's operating cash flow (OCF)? What is the cash flow to creditors? What is the cash flow to stockholders? Suppose further that net fixed assets increased by $25,000 during the year....

  • Given data: 2020 Sales $4 million COGS 50%. Operating expenses 25% of sales, interest expense 2%...

    Given data: 2020 Sales $4 million COGS 50%. Operating expenses 25% of sales, interest expense 2% sales, Tax rate 40% Divided payout 40% 100,000 shares stock outstanding. Complete an income statement and Proforma income statement for 2021. Sales projections indicate 10% growth with no change in depreciation expense. Year 2020 Proforma Growth -10% 50.0% Income Statement Sales COGS Gross Profit Operating expense Depreciation Exp EBIT Oper. Profit 25.0% No change Interest exp. 2.00% 40 EBT Tax 40% EAT Dividend RE...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT