DU Accounting Corporate Tax Liability & Net Operating Assets Questions

1. Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $13 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.2.Corporate Tax LiabilityThe Talley Corporation had taxable operating income of $490,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $30,000, (2) dividends received of $25,000, and (3) dividends paid of $35,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt.What is the firm’s taxable income? Round your answer to the nearest dollar.$  What is the tax expense? Round your answers to the nearest dollar.$  What is the after-tax income? Round your answers to the nearest dollar.$  3. The Wendt Corporation reported $55 million of taxable income. Its federal tax rate was 21% (ignore any possible state corporate taxes). A. What is the company’s federal income tax bill for the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.$ .B . Assume the firm receives an additional $2 million of interest income from some bonds it owns. What is the additional tax on this interest income? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.$  C. Now assume that Wendt does not receive the interest income but does receive an additional $2 million as dividends on some stock it owns. Recall that 50% of dividends received are tax exempt. What is the additional tax on this dividend income? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.$