Question

During 2019, one of Claire’s financial statements stated its operating income during 2019 was $38,000. Its...

During 2019, one of Claire’s financial statements stated its operating income during 2019 was $38,000. Its net income was $18,756 and its average tax rate is 45%. Assuming there is no interest income, what was its interest expense during 2019?

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Moogle Inc.’s 2019 financial statements show operating profit before tax of $542, net income of...
1. Moogle Inc.’s 2019 financial statements show operating profit before tax of $542, net income of $380, provision for income taxes of $108 and net nonoperating expense before tax of $54. Moogle’s statutory tax rate for 2019 is 35.4%. Moogle’s 2019 tax shield of net nonoperating expense is: 2.The fiscal 2019 financial statements of BT Services shows net operating profit margin (NOPM) of 11.69%, net operating asset turnover (NOAT) of 1.46, return on equity of 19.37%, and adjusted return on...
Turnball Ltd. is developing financial statements for the year ended December 31, 2019. The average income...
Turnball Ltd. is developing financial statements for the year ended December 31, 2019. The average income tax rate is 40 percent. The following pre-tax data are available: Revenues $420,000 Expenses 360,000 Gain from Discontinued Operations (pre-tax) 24,000 Unrealized foreign exchange loss on translation of foreign subsidiary (net of tax) 10,000 Required: Assuming all of the above items are subject to the average tax rate of 40%, prepare a statement of Comprehensive Income (in proper form) for the year ended December...
Montpellier Company discovered that in its 2019 financial statements, the 2019 ending inventory was overstated by...
Montpellier Company discovered that in its 2019 financial statements, the 2019 ending inventory was overstated by $12,000 and that the 2019 beginning inventory was overstated by $7,000. Before correcting these errors, Montpellier had reported $110,000 of pre-tax income. What should Montpellier report as the correct 2019 pre-tax income? (Hint: Determine separately the effect of each of the two errors on pre-tax income, and then determine the net effect of the two.) $91,000. $105,000. $117,000. $129,000.
Brooks Sisters' operating income (EBIT) is $168 million. The company's tax rate is 40.0%, and its...
Brooks Sisters' operating income (EBIT) is $168 million. The company's tax rate is 40.0%, and its operating cash flow is $142.1 million. The company's interest expense is $17 million. What is the company's net cash flow? (Assume that depreciation is the only non-cash item in the firm's financial statements.) (Answers are in $ millions.)
You have reformulated the Imber Aedax Company’s most recent financial statements and extracted the following information:...
You have reformulated the Imber Aedax Company’s most recent financial statements and extracted the following information: Year ended 31 Dec 2019 $ million Sales 35,200 Interest expense minus interest income 291 Earnings before tax 13,168 Tax expense 2,384 Comprehensive Income (CE) 11,809 As at 31 Dec 2019 $ million Net operating working capital (OWC) 936 Net non-current operating assets (NNCOA) 42,287 Net financial obligations (NFO) 11,906 a) Calculate NOA (net operating assets) and CSE (common shareholders’ equity) at the end...
1. Mattel Inc.’s 2016 financial statements show operating profit before interest and tax of $519,233 thousand,...
1. Mattel Inc.’s 2016 financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,022 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $109,491 thousand. Assume Mattel’s statutory tax rate for 2016 is 37%. -Mattel’s 2016 effective tax rate is: 2. The fiscal 2016 financial statements of Nike Inc. shows net operating profit margin (NOPM) of 11.4%, net operating asset turnover (NOAT) of 3.83, return on equity of...
Rate of Change Analyses Teicher Company presents the following condensed comparative income statements for 2020, 2019,...
Rate of Change Analyses Teicher Company presents the following condensed comparative income statements for 2020, 2019, and 2018: For Years Ended December 31, 2020 2019 2018 Sales (net) $120,000 $100,000 $85,000 Cost of goods sold (72,000) (55,000) (45,000) Gross profit $48,000 $45,000 $40,000 Operating expenses (22,000) (20,000) (18,000) Operating income $26,000 $25,000 $22,000 Other items:     Dividend revenue 400 500 200     Interest expense (1,200) (1,000) (500) Income before income taxes $25,200 $24,500 $21,700 Income tax expense (8,200) (8,000) (6,000) Net income...
Income statements for Finch Company for 2018 and 2019 follow: FINCH COMPANY Income Statements 2019 2018...
Income statements for Finch Company for 2018 and 2019 follow: FINCH COMPANY Income Statements 2019 2018 Sales $ 200,400 $ 180,400 Cost of goods sold 142,200 120,200 Selling expenses 21,700 19,700 Administrative expenses 13,000 15,000 Interest expense 3,500 5,500 Total expenses $ 180,400 $ 160,400 Income before taxes 20,000 20,000 Income taxes expense 6,000 3,900 Net income $ 14,000 $ 16,100 Required Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. Perform...
The following table presents selected 2019 financial information for Sunder Company. Sunder Company Selected 2019 Financial...
The following table presents selected 2019 financial information for Sunder Company. Sunder Company Selected 2019 Financial Data Balance Sheet: Average total assets $1,000,000 Average total liabilities 500,000 Average stockholders' equity 500,000 Income Statement Sales revenue $1,000,000 Earnings before interest (net of tax) 20,000 Interest expense (net of tax) 15,000 Net income 5,000 Round answers to one decimal place (i.e., 0.0025 = 0.3%). Use negative signs with answers, when appropriate. a. Compute Sunder's ROE, ROA, and ROFL for 2019 ROE ROA...
During its first year of operations, Alcoa Corporation reported a net operating loss of $800,000 for...
During its first year of operations, Alcoa Corporation reported a net operating loss of $800,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Which of the following is true? a. Deferred tax assets are increased by $800,000 b. Deferred tax liabilities are increased by $800,000 c. Net income is -$600,000 d. Income tax expense is debited by $200,000 e. Net income is -$800,000