Answer:
The Net Income after tax = $79,293.00
Explanation:
Centennial Brewery produced revenues of $1,145,227 in 2008. It has expenses (excluding depreciation) of $812,640, depreciation of $131,335, and interest expense of $81,112. It pays an average tax rate of 34 percent. What is the firm's net income after taxes
SOLUTION
Centennial Brewery production in 2008
Revenues $1,145,227
Less:
Expenses $812,640.00
Interest Expense $81,112.00
Add : Depreciation $131,335.00
TOTAL EXPENSES $1025087.00
∴ Revenues $1,145,227.00
Less Total Expenses $1025087.00
$120,140.00
Then charge 34% Tax $120,140.00
= 0.34 x $120,140.00 =$40,847.60
∴ Net Income after tax = $120,140.00 - $40,847.60 =
∴Net Income after tax = $79,293.00
