If a company aspires to make a target net income (i.e., income after income taxes are...

If a company aspires to make a target net income (i.e., income after income taxes are deducted) of $4,250 and the company's tax rate is 25%, what would be the profit before income taxes? (see page 103 Net income before taxes = _____________?

Expert Solution

Net income before taxes*(1-tax rate)=Target net income

Net income before taxes*(1-0.25)=4250

Net income before taxes=4250/0.75

which is equal to

=$5666.67(Approx)

ekkarill92 answered 2 years ago

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