Financial Management Solution to problem 2-3A

                                                                                
2-3A. Delaney, Inc. - Corporate


Income Tax

Sales $4,000,000
Cost of goods sold
andcash operating expense                      2400,000
Depreciation Expense  100,000
Operating profit 1500,000
Interest Expense 150,000
Taxable ncome 13,50,000


Tax Liability:

                                                     50,000  X   0.15=  7500
                                                     25,000  X   0.25=  6250
                                                     25,000  X   0.34=  8500                 
                                                     235,000X   0.39=  91650
                                                    1,015,000X 0.34= 345100
                                                  $1350000              =459000