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Question: account balance 0 to 50000 15 50000 to 75000...

Question details
Account Balance ($)
0 to 50,000 15%
50,000 to 75,000 $7,500 + 25% of the amount over 50,000
75,000 to 100,000 $13,750 + 34% of the amount over 75,000
100,000 to 335,000 $22,250 + 39% of the amount over 100,000
335,000 to 10,000,000 $113,900 + 34% of the amount over 335,000
10,000,000 to 15,000,000 $3,400,000 + 35% of the amount over 10,000,000
15,000,000 to 18,333,333 $5,150,000 + 38% of the amount over 15,000,000
18,333,333 and up 35%
Fiscal Year Gross Profit ($)
June, 2009 - May, 2010 261,100
June, 2011 - May, 2012 277,500
June, 2012 - May, 2013 292,000
June, 2013 - May, 2014 300,900
  1. Given the information provided here perform your own calculations to show the amount of corporate tax paid for each of the four (4) fiscal years covered in the table above.
  2. Is there a pattern? Explain the pattern and what it may suggest about the future performance of the organization. How can this conclusion advise investors and organizational decision makers?
  3. If there was a 20% reduction in the Gross Profit for fiscal year 6/12 - 5/13, how might this have changed the gross profit expectations for the 6/13 - 5/14 fiscal year? Provide rationale.
  4. Calculate the total expected taxes that would have been paid for these two fiscal years, with the 20% reduction in 6/12 - 5/13 and the resultant expected change in the 6/13 - 5/14 gross profit.
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