|Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings.||Mark|
|Part 1||CQU Oil Limited is a an oil wholesale company that had:
· sales last year of $2.5 million;
· cost of goods sold of $700,000;
· paid interest of $200,000;
· cash operating expenses of $150,000;
· Depreciation expense amounting to $150,000
· a tax liability equal to 30% of the firm’s taxable income.
a. Construct an Income Statement with the above data.
b. Determine CQU Oil’s taxable income and tax payable for the year.
c. Determine the total amount of:
i. fully franked dividends
ii. imputation credits that the company is able to declare from its past year’s results.
d. Analyse the data and outcome. What information can we derive from CQU Oil’s Income Statement?
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at firstname.lastname@example.org with your version of question.