Problem 2-10: The Talley Corporation had taxable operating income of $365,000 (i

Problem 2-10: The Talley Corporation had taxable operating income of $365,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $50,000, (2) dividends received of $15,000, and (3) dividends paid of $25,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt. What is the taxable income? What is the tax expense? What is the after-tax income?
Problem 3-14: Start with the partial model in the ATTACHED FILE. Joshua & White (J&W) Technology’s financial statements are also shown here. Answer the following questions.
a. Has J&W’s liquidity position improved or worsened? Explain.
b. Has J&W’s ability to manage its assets improved or worsened? Explain.
c. How has J&W’s profitability changed during the last year?
d. Perform an extended DuPont analysis for J&W for 2018 and 2019. What do these results tell you? e. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities? f. Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization.
Mini Case Study: Assume that you are nearing graduation and have applied for a job with a local bank. The bank’s evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions.
B(1): What’s the future value of an initial $100 after 3 years if it is invested in an account paying 10% annual interest?
C: We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company’s sales are growing at a rate of 20% per year, how long will it take sales to double?
D: If you want an investment to double in 3 years, what interest rate must it earn?
F(1): What’s the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10%?
F(2): What’s the present value of the annuity?
F(3): What would the future and present values be if the annuity were an annuity due?