FIN604 Portland Community College Tax and Financial Analysis I have attached two the first one about Tax. you need to put the formalthe second file ,Data &
FIN604 Portland Community College Tax and Financial Analysis I have attached two the first one about Tax. you need to put the formalthe second file ,Data & Ratios,you need to answer and correct the note . that will with red color. Tax Problem (10 points)
Name:
Several of the Democratic presidental canidates have expressed opinions that the US Corporate tax rate
needs to be raised back to 35% from it’s current 21%, and increasing the current personal tax rate
on dividends from 20% to 35%. If you were the sole owner of a corporation with a EBT of $1,000,000 and all after tax profits went to you as a dividend,
what would be the overall effect to you? Show all work.
Before
EBT
Corporate tax of 21%
PAT
Dividend rate(20%)
Dividend received
After
EBT
Corporate tax of 35%
PAT
Dividend rate (35%)
Dividend received
1,000,000
2,100,000
7,900,000
1,580,000
6,320,000
Overall Effect is
2,095,000 loss
10,000,000
3,500,000
6,500,000
2,275,000
4,225,000
Your Company Name
Walmart
2018
Current Assets
Net Fixed Assets
Total Assets
Current Liabilities
Total Liabilities
Common Stockholders’ Equity
Net Sales
Cost of Goods Sold
Gross Income
Net Income
Income Taxes
Interest Expense
Cash Provided by Operating Activities
Capital Expenditures
Cash Dividends
Current Ratio
Debt Ratio
Times Interest Earned
Gross Profit Margin
Fixed Asset Turnover
Total Assets Turnover
Return on Equity
Price Earnings Ratio
Earnings per share (EPS)
Free Cash Flow
Stock Price at 12/31 of each year.
Dividends per year per share
Rate of Return on your investment each year
Analysis: Why your company is in good shape financially
59,664
114,818
204,522
78,521
123,700
80,822
500,343
373,396
126,947
9,862
4,600
2,178
28,337
10,051
6,124
0.76
0.60
58.29
25.4%
4.36
2.45
2%
28.09
3.28
18,286
92.13
2.08
-5%
2017
57,689
114,178
198,825
66,928
118,290
80,535
485,873
361,256
124,617
13,643
6,204
2,267
31,673
10,619
6,216
0.86
0.59
54.97
25.6%
4.26
2.44
3%
22.55
4.38
21,054
98.75
2.04
5%
2016
60,239
116,516
199,581
64,619
115,970
83,611
482,130
360,984
121,146
14,694
6,558
2,467
27,389
11,477
6,294
2015
63,279
116,655
203,541
65,253
117,604
85,937
485,651
482,229
3,422
16,363
7,985
2,348
28,564
11,477
6,185
2014
61,185
117,907
202,541
69,345
121,202
81,339
476,294
473,076
3,218
16,022
8,105
2,216
23,257
12,174
6,139
0.93
0.58
49.11
25.1%
4.14
2.42
3%
21.03
4.57
15,912
96.12
2.00
60%
0.97
0.58
1.46
0.7%
4.16
2.39
3%
12.09
5.07
17,087
61.30
2
-27%
0.88
1.03
1.45
0.7%
4.04
4.04
3%
17.74
4.90
11,083
86.91
1.92
#DIV/0!
1 The Company has increased its Current Liabilities more than $ 78 B.
2 The current ratio was high in 2015.
3 The EPS, the best profit was in 2015
4 The Price Earnings Ratio is increasing
5 The Net Sales is increasing
Analysis: Why your company is not in good shape financially
1 Last 2 years, they reduce the current ratio
2 Cost of Goods Sold is increasing since 2016.
3 The price for the stock reduces last year.
4 Ratio last year,2018, was the worst.
5 The lowest percentagefor Return on Equity was in 2018
Analysis: What your company needs to improve on:
1 They need to work at Cost of Goods, to raise the income.
2 They need to work at Common Stockholders’ Equity
3 Keeping the EPS at a high rate.
4 Dividends per year per share, they need to rise it to bring Stockholders.
5 Rise Cash Dividends.
This is not a good thing!
Current ratio was under 1, not a good things.
-1
-1
Reducing current raio is not good.
-1
What ratio?
-1
Spelling (raise, not rise)
-1
Purchase answer to see full
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