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                                 Â
Interest Expense                        $81,112.00
Add : Depreciation                     $131,335.00 Â
TOTAL EXPENSES Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $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
