1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million, and the December 31, 2010, balance sheet showed long-term debt of $1.57 million. The 2010 income...

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1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million, and the December 31, 2010, balance sheet showed long-term debt of $1.57 million. The 2010 income statement showed an interest expense of $93,500.













Required:


What was the firm's cash flow to creditors during 2010?
(Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))











Cash flow to creditors

$
















2. Lifeline, Inc., has sales of $601,000, costs of $257,000, depreciation expense of $63,000, interest expense of $30,000, and a tax rate of 35 percent.















Required:

What is the net income for this firm?
(Do not include the dollar sign ($).)



3.







The SGS Co. had $283,000 in taxable income. Use the rates from Table 2.3.













Required:


Calculate the company's income taxes.
(Do not include the dollar sign ($).
Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.
)













Income taxes

$











Answered Same DayDec 24, 2021

Answer To: 1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million,...

David answered on Dec 24 2021
125 Votes
1. The December 31, 2009, balance sheet of Schism, Inc., showed long-term debt of $1.395 million, and
the December 31, 2010, balance sheet showed long-term debt of $1.57 million. The 2010 income
statement showed an interest expense of $93,500.
Required:
What was the firm's cash flow to creditors during 2010? (Do not include the dollar sign ($). Negative
amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g.,
1,234,567))
Solution:
Cash flow to creditors = Change in debt in 2010 from 2009 +...
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