the income statement has sales of $50,250,000 operating expenses of $10,115,000 cost of goods sold $35025000?

Question

and interest expense of $750,000. If the firm's income tax rate is 34% WHAT IS THE AMOUNT OF THE FIRM'S INCOME TAX LIABILITY?

Answer 1

In my accounting book it looks like this:

Sales - COGS (cost of goods sold)= Gross Profit
50,250,000 - 35,025,000= 15,225,000 Gross Profit

Gross Profit - expenses= Income from Operations
15,225,000- 10,115,000= 5,110,000 Inc.from Operations

Income from Operations - Interest Expense = Inc. before taxes
5,110,000 - 750,000= 4,360,000 Income before taxes

Then take the 4,360,000 x the 34% tax rate.

= 1,482,400 is the tax liability

Answer 2

No, fee of goods bought isn't an cost. that is purely what it says: the fee of shopping for the products you're promoting. that contains also freight in. fee of goods bought is the direct outlay required to receive what you're promoting. prices are prices that take position contained in the attitude of promoting the products upon getting them in inventory. A criminal duty is something completely diverse back. It belongs on the steadiness Sheet because it impacts your internet nicely worth. In different words, the belongings you own (sources) a lot less the belongings you owe (liabilities) equals your internet nicely worth. for sure, in case you haven't paid money for the acquisition of your products (fee of goods), then it would correspondingly take position as an account payable (criminal duty) on your stability Sheet. it really is why it really is reported as a double get entry to equipment....each and every credit must have a debit. the web income/lack of the income fact impacts the steadiness Sheet.

Answer 3

1,737,400.00