Generally, the corporate income tax is computed using a regressive rate schedule.
Answer the following statement true (T) or false (F)
False
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Corporations are subject to specific corporate tax rates different from those for individuals
a. True b. False Indicate whether the statement is true or false
Tampa Corporation's balance sheet showed the following amounts for their liabilities and stockholders' equity accounts: Current Liabilities, $20,000; Bonds Payable, $60,000; Lease Obligations, $12,000; and Deferred Income Taxes, $2,000 . Total stockholders' equity was $42,000 . The debt-to-equity ratio is
a. 0.45 b. 0.58 c. 1.76 d. 2.24
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 35,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $2 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Voltaic outsources, what will be the effect on operating income?
A) increase of $11,000 B) decrease of $11,000 C) decrease of $10,000 D) increase of $16,000
Answer the following statement(s) true (T) or false (F)
1. An increase in the return on sales ratio probably means that the company is becoming more profitable. 2. When investors ares attempting to determine how the company is financed, either debt or equity financing, they should examine debt ratios. 3. A company measures its ability to pay long-term debts through equity ratios. 4. The higher the debt-to-equity ratio is, the greater the chance that the firm will be unable to meet its obligations. 5. The higher the times-interest-earned ratio is, the more likely it is that the firm may have trouble making its interest payments to its creditors.