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# Comparing taxable income for married couples

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Roy and Brandi are engaged and plan to get married. Roy is a full-time student and earns \$9,000 from a part-time job. With this income, student loans, savings, and non- taxable scholarships, he is self-supporting. For the year, Brandi is employed and reports \$61,000 wages. How much 2012 Federal income tax, if any can Brandi save if she and Roy marry in 2013 and file a joint return. What is the 2012 tax return if Roy and Brandi do not marry?
Will Brandi save on her taxes if she and Roy marry?
Do the calculation and write a 2 paragraph memo with the calculations and tax advice.

#### Solution Preview

We need to calculate the variables given in this scenario. This scenario deals with the standard deduction. Roy is a full-time student and earns \$9,000. Brandi is employed and receives \$61,000 in W-2 income. We need to determine how much Brandi will save.

If Brandi marries Roy, her standard ...

#### Solution Summary

This solution shows how to calculate the difference between the two options, which include Brandi staying single or marrying Roy. The solution provides the student with information to craft his/her tax memo and advice regarding their current situation.

\$2.19

## Joe and Mary's Dog Food, Financial Statement Analysis. Calculate ratios

**Please see attachment for case study info and balance sheet and income statement.

1. Create Funds statements for 2001, 2002 and 2003.

2. Calculate the following ratios for 2000: Current ratio, Quick ratio, Inventory turnover ratio, Gross profit Margin, Net profit margin, ROA, Asset turnover ratio, fixed asset turnover ratio, debt ratio, and the times interest earned ratio.

3. Calculate the Debt ratio and the current ratio for 2000, 2001, 2002 and 2003. Compare the ratios over the 4-year period and explain any trends you see and any deviations from that trend.

4. Bob has reason to believe that the company will grow their sales by 10% from 2003 in 2004. Create a budgeted Income Statement for Joe and Mary's Dog Food Company for 2004. Assume that the cost structure that was in place for the company with regards to fixed cost and interest expense will be the same in 2004 as it was in 2003, and that the firms variable costs will continue to be 40% of total sales. The company is the 35% tax bracket.

5. What would the company's dividend payment be for 2004? How much of the dividend was paid out to Joe and Mary if they did not own any shares of the firm's common stock. Ignore the taxes that would be paid on the dividend payment.

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