Falcon Networks Is a Leading Semiconductor Company with Operations in 17

question 52

Multiple Choice

Falcon Networks is a leading semiconductor company with operations in 17 different countries. Information about the company's taxes appears below:
$\text {Falcon Not works}$
$\text {Components of Income Tax Expense}$
$\text {(in millions) }$


$\begin{array}{llcc} \text { } &2012&2011 \\ \text { Current - Federal } &\$55.65&\$47.52\\ \text {\quad\quad - Foreign } &83.85&78.95\\ \text { \quad\quad - State and Local} &\underline{14.69}&\underline{12.5}\\ \text {Total Current } &\$154.19&\$138.97\\\\ \text {Deferred - Federal } &\$30.28&\$42.90\\ \text { \quad\quad - Foreign} &\underline{23.89}&\underline{14.58} \\ \text {Total Deferred } &\$54.17&\$57.48\\\\ \text { Total Income Tax Expense } &\underline{\$208.36}&\underline{\$196.45}\\\\ \text { Note: Falcon Networks has no curent liability at year-end withrespect to total current taxes. } &\\\\ \text { Components of Income before Taxes } &2012&2011\\ \text { United States } &\$256.35&\$253.68\\ \text {Foreign } &\underline{236.85}&\underline{198.85}\\ \text {Total } &\underline{\$493.20}&\underline{\$452.53}\\\end{array}$

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Based on the information provided by Falcon Networks how much cash did income taxes use during 2012?

• A) $154.19 million
• B) $54.17 million
• C) $208.36 million
• D) $284.84 million

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Definitions:

Resource Shortages

Situations where the demand for resources exceeds the supply, leading to operational or strategic challenges in an organization.

Operating Objectives

Specific, short-term goals set by a business to guide daily operations, geared towards efficiency and effectiveness in achieving the organization's strategy.

Adaptive Organisation

An organization capable of adjusting its strategies, structures, and processes in response to changing internal and external environments to remain viable and competitive.

High-quality Goods

Products that meet or exceed customer expectations in terms of performance, durability, and reliability, often as a result of superior materials, craftsmanship, and quality control processes.