Question

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,956,100....

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,956,100. Depreciation and amortization was $865,800, interest expense for the year was $877,400, and selling general and administrative expenses totaled $1,543,500 for the year, and cost of goods sold was $10,278,300 for the year. Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax? Round to the nearest cent.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

To get net income after tax, we need to calculate earnings before tax (EBT) and then subtract taxes.
We will use the following equation to calculate EBT:

EBT= Sales - Cost of goods sold - Selling General and Administrative Expenses - Depreciation and amortization - Interest expense
EBT= $16,956,100 - $10,278,300 - $1,543,500 - $865,800 - $877,400= $3,391,100
So, EBT= $3,391,100

Tax amount= $3,391,100*34%=$3,391,100*.34=$1,152,974

Net income after tax is calculated as EBT - Taxes

Net income after tax= $3,391,100 - $1,152,974

Net income after tax=$2,238,126

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 1 The average tax rate is Question 6 options: the tax rate that is paid...
Question 1 The average tax rate is Question 6 options: the tax rate that is paid on the last dollar of income earned always higher than the marginal tax rate calculated by dividing the total taxes paid by the taxable income none of the above Question 2 If Cleveland Motors Had an EBIT of $22,560,700, Interest of $7,479,900 and is taxed at an average rate of 32% what is their Net Income? Round to the nearest cent. Your Answer: Question...
Rogue Corp. has sales of $5442561; the firm's cost of goods sold is $2362175; selling, general,...
Rogue Corp. has sales of $5442561; the firm's cost of goods sold is $2362175; selling, general, and administrative expenses are $504057, and depreciation is $1145466. The firm's interest expense is $222651, and the corporate tax rate is 20%. What is Rogue's net income?
During fiscal year 2019, Magic Kingdom had sales of $2 million. Its cost of goods sold,...
During fiscal year 2019, Magic Kingdom had sales of $2 million. Its cost of goods sold, selling and general administrative expenses, and depreciation were $1.2 million, $.5 million and $.9 million, respectively. Its 7% semiannual coupon bonds will mature in 10 years, and there is no other debt. The tax rate is 21%, and tax losses cannot be carried forward or back. What is the operating cash flow for Magic Kingdom in fiscal year 2019?  
During 2015, Rainbow Umbrella Corp. had sales of $720,000. Cost of goods sold, administrative and selling...
During 2015, Rainbow Umbrella Corp. had sales of $720,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $90,000, and $85,000, respectively. In addition, the company had an interest expense of $90,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) What is the company's net income for 2015? What is it's operating cash flow?
Corp. reported EBITDA of $2,496,000 for the fiscal year ended December 31, 2019. During the same...
Corp. reported EBITDA of $2,496,000 for the fiscal year ended December 31, 2019. During the same period, the company had $158,000 in interest expense, $687,000 in depreciation and amortization expense, and an average corporate tax rate of 25 percent. What was the cash flow to investors from operating activity (CFOA) during 2019? (round to the nearest dollar. )
Net Income and OCT During 2015, rainbow umbrella corp. had sales of$590,000 cost of goods sold,...
Net Income and OCT During 2015, rainbow umbrella corp. had sales of$590,000 cost of goods sold, administrative and selling expenses and depreciation expenses were $455,000, $85,000 and $125,000, respectively. In addition, the company had an interest expense of $65,000 and a tax rate of 35% (ignore any tax loss carry back or carry forward provisions) A. What is the company’s net income for 2015? B. What is it’s operating cash flow? C. Explain your result in (a) and (b)
During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling...
During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $454,000, $99,000, and $144,500, respectively. In addition, the company had an interest expense of $72,200 and a tax rate of 24 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.)    a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.) b....
During 2018, Raines Umbrella Corp. had sales of $751,000. Cost of goods sold, administrative and selling...
During 2018, Raines Umbrella Corp. had sales of $751,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $458,000, $101,000, and $146,500, respectively. In addition, the company had an interest expense of $73,000 and a tax rate of 23 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.)    a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.) b....
During 2018, Raines Umbrella Corp. had sales of $734,000. Cost of goods sold, administrative and selling...
During 2018, Raines Umbrella Corp. had sales of $734,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $566,000, $87,000, and $127,000, respectively. In addition, the company had an interest expense of $96,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $20,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...
During 2018, Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling...
During 2018, Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $576,000, $91,000, and $134,000, respectively. In addition, the company had an interest expense of $96,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $20,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT