财政治理双语局部课后训练谜底2-7a.Calculationofgrossincome:2000$60,00010,0005,000SalaryDividendIncomeInterestIncome(IBMbondsonly)STcapitalgains1,000=$22,000-$21,000GrossIncome(excludingLTcapitalgains)$76,000LTcapitalgains=$22,000-$9,000=13,000xxLTCapitalgainstaxrate=20%.Nottaxed:$10,000interestonFloridamunicipalbondsCalculationoftaxableincome:GrossIncomeExemption$76,000(2,750)(5,000)$68,250DeductionsTaxableIncome(excludingLTcapitalgains)Personaltax=Taxontaxableincome(excludingLTcapitalgains)+LTcapitalgainstax=$14,138.5+($68,250-$62,450)(0.31)+$13,000(0.2)=$14,138.5+$1,798+$2,600=$18,536.50b.c.Marginaltaxrate=31%.Averagetaxrate=$18,536.50/($68,250+$13,000)=22.8%.After-taxreturns:IBM=(0.11)-(0.31)(0.11)=7.59%FLA=(0.09)-0=9.00%TheFloridabondsprovideahigherafter-taxreturn.d.9%9%=11%(1-T).NowsolveforT:=11%-11%T11%T=2T=2/11=18.18%.Atataxratelessthan18.2percent,Margaretwouldbebetteroffholding11percenttaxablebonds,butatataxrateover18.2percent,shewouldbebetteroffholdingtax-exemptmunicipalbonds.Givenourprogressivetaxratesystem,itmakessenseforwealthypeopletoholdtax-exemptbonds,butnotforthosewithlowerincomesandconsequentlylowertaxrates.2-8a.Salaryandincome:aDonaldssalary$50,000.02,500.0InterestfrombondsIncomefromrentalpropertyAdjustedincome42,000.0=$3,500x12months$94,500.0Expenses,exemptions,anddeductions:Exemptions=2x$2,750Interestonmortgagesb$5,500.018,000.01,250.0PlumbingexpensescTotalexpensesanddeductions$24,750.0Taxableincome$69,750.0Taxes=$6457.5+($69,750-$43,050)x0.28=$13,933.50aWecouldhaveincludedMaryannessalaryinthissection,butthenwewouldhavehadtorecognizetheamountsheearnedasanexpenseassociatedwiththerentalproperty.Becausethetwoitemscanceleachother,weneednotincludethemhere.Also,weignoreemploymenttaxesinthisproblem.bTheamountoftheinterestandpropertytaxespaidonbothhousesistaxdeductible.cOnlytheplumbingexpenseassociatedwiththerentalpropertyistaxdeductiblebecauseitwasincurredinthegenerationofbusinessrevenues.Suchpersonalexpensesarenotdeductible.b.Salaryandincome:DonaldssalaryInterestfrombondsAdjustedincome$50,000.02,500.0$52,500.0Expenses,exemptions,anddeductions:Exemptions=2x$2,750Interestonmortgagesa$5,500.05,350.0Totalexpensesanddeductions$10,850.0Taxableincome$41,650.0Taxes=$0+$41,650x(0.15)=$6,247.50aOnlytheamountofinterestandpropertytaxespaidonthecouplesresidenceisapplicable.c.Expensesincurredtogeneratebusinessincomearetaxdeductible,butpersonalexpensesarenot.Thecostoffixingtheplumbingintherentalhousewouldbeconsideredabusinessexpense,butthecostoffixingtheplumbingintheJeffersonsownhousewouldbeconsideredapersonalexpense.3-2a.IndustryCampsey1.98xAverageCurrentassets$655,0002.0xCurrentliabilities$330,000Accountsreceivable$336,00075.0days5.60x35.0days5.6xSales/360$4,465.28Costofgoodssold$1,353,000Inventories$241,500$1,607,500Sales1.70x3.0xTotalassets$947,500NetincomeSales$27,3001.7%1.2%$1,607,500Netincome$27,3002.9%3.6%Totalassets$947,500Netincome$27,3007.6%9.0%Commonequity$361,000Totaldebt$586,50061.9%60.0%Totalassets$947,500b.ForCampsey,ROA=PMxTAturnover=1.7%x1.7=2.9%.Fortheindustry,ROA=1.2%x3.0=3.6%.c.Campseysdayssalesoutstandingismorethantwiceaslongastheindustryaverage,indicatingthatthefirmshouldtightencreditorenforceamorestringentcollectionpolicy.Thetotalassetsturnoverratioiswellbelowtheindustryaveragesosalesshouldbeincreased,assetsdecreased,orboth.WhileCampseymarginishigherthantheindustryaverage,itsotherprofitabilityratiosarelowcomparedtotheindustryincomeshouldbehighergiventheamountofequityandassets.However,thecompanyseemstobeinanaverageliquiditypositionandfinancialleverageissimilartoothersintheindustry.netd.If2005representsaperiodofsupernormalgrowthforCampsey,ratiosbasedonthisyearwillbedistortedandacomparisonbetweenthemandindustryaverageswillhavelittlemeaning.wholookonlyat2005ratioswillbemisled,andareturntonormalconditionsin2006couldhurtthestockprice.Potentialinvestorsfirms3-4a.FinnertyIndustryAverageFurnitureCurrentassets$3032.73x30.00%11.00x4.15x2.0x30.0%7.0xCurrentliabilities$111Debt$135DebtratioTotalassets$450EBIT$49.5$4.5TimesinterestearnedInterestCostofgoodssold$660Inventoryturnover8.5xInventories$159AccountsreceivableSales/360$66DSO29.89days5.41x24.0days6.0x$795/360Sales$795FixedassetsturnoverFixedassets$147Sales$795Totalassetsturnover1.77x3.0xTotalassets$450NetincomeSales$27Netprofitmargin3.40%6.00%8.57%3.0%$795Netincome$27Returnontotalassets9.0%Totalassets$450Netincome$27Returnonequity12.9%Totalequity$315b.ROA=ProfitmarginxTotalassetsturnoverNetincomeSalesSalesTotalassets$2