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(Answered) Working capital, dividends, effective and average tax rate


DeBauge Realtors, Inc., is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation's stock. The following summarized data (in thousands) are taken from the December 31, 2010, financial statements;For the Year Ended December 31, 2010;Commissions revenue $145;Cost of services provided 61;Advertising expense 27;Operating income $ 57;Interest expense 5;Income tax expense 19;Net income $ 33;=======;At December 31, 2010;Assets;Cash and short-term investments $ 31;Accounts receivable, net 42;Property, plant, and equipment, net 124;Total assets $ 197;========;Liabilities and Owners' Equity;Accounts payable $ 93;Income taxes payable 8;Notes payable (long term) 48;Paid-in capital 23;Retained earnings 25;Total liabilities and owners' equity $ 197;========;At December 31, 2009, total assets were $204 and total owners' equity was $48. There were no changes in notes payable or paid-in capital during 2010.;Calculate the effective interest rate on the notes payable for DeBauge Realtors, Inc. (Round your answer to 2 decimal places.);Effective interest rate ______ %;Calculate the company's average income tax rate. (Hint: You must first determine the earnings before taxes.) (Round your answer to the nearest whole percent.);Average income tax rate _______ %;Calculate the amount of dividends declared and paid to Jeff and Kristi DeBauge during the year ended December 31, 2010. (Hint: Do a T-account analysis of retained earnings.) (Amounts should be entered in the full amount and not in 000s. (Example - enter 20,000 and not 20). Since dividends are a deduction from retained earnings, enter the amount of dividends with a minus sign.);Dividends declared and paid $;Calculate the amount of working capital and the current ratio at December 31, 2010. (Negative amount should be indicated by a minus sign. Amounts should be entered in the full amount and not in 000s. (Example - enter 20,000 and not 20). Round your ratio answer to 2 decimal places.);Working capital $;Current ratio
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Working capital, dividends, effective and average tax rate

 


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