Answered: A company has profit before interest…

A company has profit before interest and tax of £66000 Interest payable is £6000 Tax is payable at 25% What is the profit after Tax? £

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 2020 2021 Cost of Goods sold 55,000 58.000 Cost of Goods sold 450,000 440,000 Net Sales 550,000…

A: On the gross profit, there is no charge of tax on it. It is calculated on the net profit earned by…

Q: The tax rates are as shown below: Taxable Income Tax Rate 15% $0 - 50,000 50,00175,000 25% 75,001…

A: Taxation: Taxation refers to the imposition of compulsory financial obligations by the government on…

Q: If EBIT is 15,00,000, interest is 250000,corporare tax is 40 percent degree of financial leverage is…

A: Degree of financial leverage = EBIT / EBT

Q: The tax rates for a particular year are shown below: Taxable Income $0-50,000 Tax Rate 15 % - 50,001…

A: Solution:Average tax rate refers to the percentage of total taxes paid to the total taxable…

Q: 6. If EBIT equals $200,000 and interest expenses equals $30,000 and Tax rate is 50%. What is the net…

A: EBIT = $200,000 Interest expenses = $30,000 Tax rate = 50%

Q: Vukovich Company reported pretax income of $130,000 and interest expense of $30,000 for its most…

A: Ratio analysis is a process of getting inside review of an organisation. An investor can get various…

Q: Optional deduction is computed as a.net income less net expenses b.gross sales multiply to 40%

A: The answer is option b. gross sales multiply to 40%

Q: Based on the cost and revenue structure on the income statement, what was NUBD's break- even point…

A: The question is based on the concept of Financial Management.

Q: Assume that dividends are taxed at your marginal tax rate of 38% while capital gains are taxed at…

A: The portion of the earnings per share that is given to the shareholder is termed as the dividend.

Q: sing the following information, calculate net profit before tax. $ Sales revenue 300…

A: Solution: Particulars Amount Sales Revenue 300,000 Less: Wages Expense (100,000)…

Q: What will be the total operating expense? a.41200 b.53200 c. 19700 d. 21500 2-What will be the net…

A: Operating expense is defined as the expense which business make from its normal course of business…

Q: + Question:8 Sales COGS Gross profit G&A expenses Sales & Marketing expenses Depreciation Operating…

A: Using the values in the table; 1. Calculate SalesSales = Gross profit + COGSSales = $1,600,000 +…

Q: Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding…

A: Computation:

Q: None

A: Part aGiven:Operating expense: $10.06 millionTax rate: 25%1. Effect on this year's earningsOperating…

Q: Sales Costs Taxable Income Income Taxes Income Statement Sales -The most recent financial statements…

A: Proforma financial statements means financial statements forecasted for future period based on…

Q: Given the information below, what is the marginal tax rate if a firm has taxable income of $160,000?…

A: Calculation: Formula snip:

Q: 2. Waitrose has sales of £820,000 and costs of £600,000. Interest expense is £36,000 and…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The following annual date pertains to Badidap corp. Financial breakeven point 519000 Preferred…

A: The amount of revenue before taxes, interest, and amortization that will yield either negative net…

Q: f the company’s cost of equity is 45%, Interest on Debt is OMR 10,000, market value of equity is OMR…

A: Net Operating Income approach: Under the Net Operating income approach , any change in the debt of…

Q: The forecasts of Midway Limited for 2023 included Operating expenses R980 000, Interest expense R35…

A: Profit After tax is determined after deducting tax amount from profit before tax.Here, Tax rate =…

Q: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: 2. Use the following information to answer the following questions: Taxable income Tax rate $…

A: Working : Average Tax Rate = (Tax Payable / Taxable Income) x 100 Marginal Tax Rate = Last slab of…

Q: 3. Net income after tax is P 54,000 . Income tax rate is effectively 40%. The number of times…

A: Net Income before tax = Net income after tax / ( 100 - tax rate ) Net Income before tax = P 54,000…

Q: 4. LSP Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing…

A: Based on the information available we will calculate the net income, taxes, and other costs.

Q: In the Economic Order Quantity (EOQ) Theory, if CO £20, D 24,000, EOQ 400, calculate the…

A: EOQ theory state and calculate the ideal order quantity that an organization needs to be purchased…

Q: Byron Books Inc. recently reported $12 million of net income. Its EBIT was $27.6 million, and its…

A: By working the question backwards, we can solve for the interest expense.First, we need to determine…

Q: BTS Corporation had the following information: 2015 2016…

A: Here discuss about the details of the income tax payable between the Regular Corporate income tax…

Q: Calculate gross margin (%) Calculate operating margin (EBIT = Operating Profit) (%) a- Calculate…

A: The question is based on the concept of Financial Ratios. The gross profit margin ratio is…

Q: Choose the correct letter of answer and provide a solution A firm has profit before tax of P63…

A: Interest coverage ratio is a financial ratio which determines how well a company can pay the…

Q: How much pre tax income must a company with a tax rate of 35% need to earn per share to pay out…

A: Dividend per share (D) = $2.35Tax rate (T) = 0.35Pre tax income = ?

Q: regardin on how to get income po... if you'll compute it the result will turn out 63,000 but on your…

A: Financial ratios are a way of analyzing and evaluating the performance of a business by using…

Q: Times interest earned A company reports the following: Income before income tax expense $6,000,000…

A: Solution: Income before interest and income tax = Income before income tax expense + Interest =…

Q: A firm incurs $60,000 in interest expenses each year. If the tax rate of the firm is 25%, what is…

A: An interest expense is the cost incurred by an entity for borrowed funds. Interest part of your debt…

Q: If a company has a discontinued operation gain of $30000 and a 32% tax rate, what is the effect on…

A: Income from discontinued operations means income from that segment of business which is now…

Q: Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of…

A: Profit Margin = Net Profit /Sales

Q: Net Income 20,904 14,547

A: 2020Sales 425000Cost of goods sold 328446.2Gross Profit96553.82Depreciation29800Selling & Admin…

Q: Byron Books Inc. recently reported $9 million of net income. Its EBIT was $18.7 million, and its tax…

A: Net income: It is the income that is calculated after charging tax. Pre- tax income: It is the…

Q: 26. A is a non-VAT business with a total sales of P1,500,000 of which 70% has been collected. Its…

A: Since A is a non-VAT business, it is subject to percentage tax, which is a tax on gross sales or…

Q: The following data applies to a firm: Interest charges=P50,000.00; Sales = P300,000.00; Tax…

A: Here in this case we are required to calculate interest covered ratio. We first need to understand…

Q: What effect would a$9.85 million operating expense have on this year's earnings? What effect would…

A: Information Provided: Tax rate = 25% Operating expense = $9.85 million

Q: In identifying the amount of liability for bonus which is based on profit before bonus but after…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: f Average assets and capital are 900,000 and 540,000, respectively, with an ROE of 0.046, how much…

A: Average Assets are 900,000 Capital is 540,000 ROE is 0.046

Q: Problem 17-6AA Income statement computations and format LO A2 (The following information applies to…

A: SOLUTION- NET INCOME IS THE TOTAL AMOUNT OF MONEY YOUR BUSINESS EARNED IN A PERIOD OF TIME , MINUS…

Q: 3. Not for profit accounting accounts for expenses in the following manner: NET goods or services…

A: HST recovery is the type of expense recovery , this is allowed when one business purchased goods and…

Q: Suppose a firm’s tax rate is 25%. 1. What effect would a $9.26 million operating expense have on…

A: With the given values, we can determine the correct option by making certain calculations related to…

Q: Suppose a firm's tax rate is 25%. 1. What effect would a $10.92 million operating expense have on…

A: 1) Answer A) $10.92 million operating expense would be immediately expensed, increasing operating…

Q: total sales of $340,000. And a net income after tax of $47,600. Calculate the operating margin if…

A: To calculate the operating margin we need to calculate the operating income.Operating Income is an…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

A company has profit before interest and tax of £66000
Interest payable is £6000
Tax is payable at 25%

What is the profit after Tax? £

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the Term Profit after Tax:

VIEW

Step 2: Calculation of Profit after Tax:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the effective tax rate that a company will end up paying if their year income is $16.7 million? The tax needs to be calculated based on the table shown below: From Below Tax + Marginal additional tax $0 $50,000 15% $50,000 $75,000 $7,500 + 25% over $50,000 $75,000 $100,000 $13,750 + 34% over $75,000 $100,000 $335,000 $22,250 + 39% over $100,000 $335,000 $10,000,000 $113,900 + 34% over $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% over $10,000,000 $15,000,000 $18,333,333 $5,150,000 + 38% over $15,000,000 Group of answer choices 27.4483% 34.1007% 34.0000% 34.7066%
7-
Answer the question attached in the image below
Suppose a firm's tax rate is 35%. a. What effect would a $9.64 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would an $8.70 million capital expense have on this year's earnings if the capital is depreciated at a rate of $1.74 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $9.64 million operating expense have on this year's earnings? Earnings would increase (decline) by $ ☐ million. (Round to two decimal places, and use a negative number for a decline.) What effect would it have on next year's earnings? (Select the best choice below.) A. There would be no effect on next year's earnings. B. Next year's earnings will be affected by a decline of $3.37 million. C. Next year's earnings will be affected by an increase of $3.37 million. D. Next year's earnings will be affected by the same amount. b. What effect would an $8.70 million capital expense have on…
A4) Finance You estimate that the net income for a company next year is a uniform distribution with a minimum of $106 million and a maximum of $127 million. What is the probability that the company's net income is less than or equal to $117 million? Enter answer in percents, to two decimal places.
ACE Limited has the following results for the 15 months to 31 December 2021: £ Adjusted trading profit, before deduction of capital allowances 1,500,000 Capital allowances claimed: Year to 30 September 2021 312,650 3 months to 31 Dec 2021 40,210 Capital gains/loss Disposal 12 May 2021 (Gain) 15,586 Disposal 6 October 2021 (loss) (12,692) Building society interest: Received 31 December 2020 3,500 Received 31 December 2021 4,000 UK dividend received on 25 November 2021 10,000 Accrued building society interest was £2,000 on 30 September 2020, £4,000 on 30 September 2021 and £2,000 on 31 December 2021. Required: Compute the company’s total corporation tax liability for the 15-month period.
choose the letter of the correct answer Yana Corp. has a profit before tax of P90 million. If the company's times interest covered ratio is 4, what is the total interest charge? a. P15Mb. P30Mc. P40Md. P50Me. P60M
Given the tax rates as shown, what is the marginal and average tax rates for a firm with taxable income of $102,000? Taxable Income Tax Rate $0-50,000 15% $50,001-75,000 25% $75,001-100,000 34% $100,001-335,000 39%
A company wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the company’s pre-tax income in order to have $60,000 after-taxes? a.$143,000 b.$88,235 c.$19,200 d.$79,200
4. Binford Tools has an expected perpetual EBITDA equal to $67k. Its tax rate is 35%. Binford has $139k in debt at a cost of 6.85%. The unlevered capital cost is 10.25%. What is Binford's total value assuming interest is tax deductible?
Nnana Ltd currently retains 60% of its earnings which are R6 a share this year. It earns an ROE of 30%. Assuming a required rate of return of 22%, how much would you pay for Nnana Ltd based on the earning multiplier model? a. b. C. R78.92 R79.88 R82.88 d. R70.80
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 10 On average, profit (loss) amounts deviate from the expected profit by ______ thousand. a $114.77 thousand b $112.52 thousand c $110.31 thousand d $108.15 thousand