Duela Dent is single and had $196,000 in taxable income. Use the rates from Table 2.3....

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Duela Dent is single and had $196,000 in taxable income. Use the rates from Table 2.3. a. What is the average tax rate? (Do n

Rotweiler Obedience Schools December 31, 2018, balance sheet showed net fixed assets of $1,755,000, and the December 31, 201

The December 31, 2018, balance sheet of Justins Golf Shop, Inc., showed current assets of $1,015 and current liabilities of

The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,425,000 and the December 31, 2019, balance

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Answer 1

Answer #1

In the case of answer to tax rate, the table 2.3 is not available, please provide the table to provide the answer

Computation of net capital spending for the year 2019 :
Net capital spending for the year 2019 can be found using the below formula

Net fixed asset as at Dec 31 2019 = Net fixed asset as at Dec 31 2018 + Capital spending for 2019 - Depreciation for the year 2019
Thus
Net fixed asset as at Dec 31 2019		$2,100,000.00
(-) Net fixed asset as at Dec 31 2018		-$1,755,000.00
(+) Depreciation for the year 2019		$327,000.00
Capital spending for 2019		$672,000.00

Computation of net working capital :
Net working capital represents the change in net current assets between the current financial year and the last financial year
where, net current assets is the difference between the current assets and cuurent liabilities
Thus

Current asset as at Dec 31 2019	$1,230.00
(-)Current liability as at Dec 31 2019	-$905.00
Working capital as at Dec 31 2019		$325.00
Current asset as at Dec 31 2018	$1,015.00
(-)Current liability as at Dec 31 2018	-$870.00
Working capital as at Dec 31 2018		$145.00
2019's net working capital		$180.00

Computation of cash flow to creditors for the year 2019 :

Cash flow to creditors for the year 2019 can be found using the below formula

A

Long term debt as at Dec 31 2019 = Long term debt as at Dec 31 2018 + Interest expense for 2019 - Cash flow to creditors for the year 2019
Thus
Long term debt as at Dec 31 2018		$1,425,000.00
(+) Interest for the year 2019		$96,500.00
(-) Long term debt as at Dec 31 2019		-$1,630,000.00
Cash flow to creditors for the year 2019		-$108,500.00

A negative cash flow to creditors implies that the Company has money borrowed from creditors during the year 2019 exceeds the repayment made to the creditors

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Answer 2

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Duela Dent is single and had $196,000 in taxable income. Use the rates from Table 2.3....

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