Finance Assignment | Top Essay Writing
March 18th, 2020
Please, write the answer in Word format with Formulae written
Khalifa Computers has 3,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts.
| Sales Revenue | 85,000 |
| General and Administrative Expense | 4,500 |
| Interest Expense | 5% |
| Depreciation Expense | 4,250 |
| Preferred Stock Dividends | 1,200 |
| Selling Expense | 4,000 |
| Cost of Goods Sold | 37,000 |
| Equity Dividend | 1,350 |
| Secured Loan | 56000 |
Calculate:
- Gross profits.
- Operating profits.
- Net profits after taxes (assume a 30 percent tax rate).
- Calculate the depreciation using the MACRS approach for an asset that costs $85,000 and is being depreciated using a 5-year normal recovery period (depreciation rate is as follows: 20%, 32%, 19%, 12%, 12%, and 5%). Will the depreciation amount be the difference in the case of the straight-line method when the scrap value of the asset is $5,000? Get Finance homework help today
