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CHapter 3
    2    Taxable income is the income the taxpayer is obliged to pay to the government as government's revenue in a particular year.
        Formula = Gross income (AGI) minus allowable itemized or standard deductions
        Filing status    Single
        Dependent    No
        Salary    $ 131,000
        Standard deduction    $ 6,350
        Taxes estimated    $ 26,750
        20.42% of total income
        Income puts in the 28% tax bracket.
        With phase outs adding 10000 dollars would put you in 28% tax bracket.
        Average tax rate    20%
        Tax bracket    28%
        Marginal Tax rate    28%
        Capital gains    28% of $6200
            $ 124
    3    3.03 (income statement)
        Ebitda    12500000
        Net income    3000000
        Interest Expense    2000000
        Corporate tax    40%
        EBITDA=Net Income+Interest+Taxes+D+A
        therefore, Depreciation & amortization = EBITDA - Net income - Interest expense - taxes
        =B25-B26-B27-(B25*40%)
        2500000
    6    Federal Tax Liability    Amount
        Salary    $ 111,000
        Dividend Income    $ 10,500
        Interest income    $ 7,200
        Capital gain    $ 17,500
        Capital gain    $ 1,300
        Deductions:
        One exemptions    $ 4,050
        itemized deductions    $ 7,500
        Tax liability    $ 135,950
        Marginal tax rate    28%
        Average tax rate    20%
CHapter 4
    8    4.07 (ROE ROIC)
        ROE = Net Income / Shareholder's equity
        =$25000/$254000
        0.1020
        ROIC= NOPAT/ Invested Capital            0.1008
        NOPAT = Net income + taxes +Interest + Non operating gains/losses * (1tax rate)
        Net income    25000
        Interest    4000
        Tax     45%
        Notes payable    24000
        Debt long    80000
        Equity    245000
        NOPAT =     35187.5
        Invested capital =    349000
    9    4.12 Ratio
        Times interest earned = EBITDA / Interest expense                142800000.0025
        Return    140000000
        tax    40%
        BEP ration    20%
        ROA     5%
        BEP =EBIT/Total assets
        EBIT=Total Assets * BEP
        28000000
        ROA = operating income / total assets
        7000000
    10    4.13 TIE and ROIC
        Times interest earned = EBITDA / Interest expense
        ROIC= NOPAT/ Invested Capital
        NOPAT = Net income + taxes +Interest + Non operating gains/losses * (1tax rate)
        TIE =     14.2857142857
        ROIC=    1.36
    11    4.2
        225000    Decrease
        35    Days
        900000    Receivables
        46.6666666667    New level
CHapter...