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 salaried $20 million 2-7 Corpo compute task Liability b atomic number 18(a) tax rate=34% dutiable 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 put up Mini fictitious character: a. Why is corporal pay important to all managers? Because favored companies have skilled tribe at all levels inside(a) the company, strong relationships with groups outside the company and plenty championship. Companies nee d funding to execute their plans ans support their operations. b. organizational forms from plumpup to corporation, advantages and disadvantages? Companies start out normally as a proprietorship, normally have by one person, who meets all the licenses.

Some advantages be it is liberal and inexpensive to form, few government regulations and income is not pass on to corporate taxation. thither be 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 organise a non-corporate busi ness for profit. The advantages and disadvan! tages are 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 wage 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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