Question
In: Finance
Co. XYZ has the following information on its income statement: Sales $ 50,250,000 Operating Expenses $...
Co. XYZ has the following information on its income statement: Sales $ 50,250,000 Operating Expenses $ 10,115,000 Cost of goods sold $ 35,025,000 Interest expense $ 750,000 Income tax rate $ 34% What is the tax debt for income concept?
Solutions
Expert Solution
Let is construct income statement to calculate tax liability
Sales = 50250000
Less cost of goods sold = 35025000
Less operating expenses = 10115000
EBIT = 5110000
Less interest = 750000
EBT = 4360000
Less tax @34% = 1482400
Net profit = 2877600
From the above statement we calculated tax as 1482400
jeff jeffy answered 1 year agoRelated Solutions
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