-Triumph Trading Company provided the following information to its auditors. For the year ended March 31, 2008, the company had revenues of $1,122,878, operating expenses (excluding depreciation and leasing expenses) of $612,663, depreciation expenses of $231,415, leasing expenses of $126,193, and interest expenses of $87,125. If the company's average tax rate was 34 percent, what is its net income after taxes? Round your final answer to the nearest dollar.
A) $43,218
B) $65,482
C) $152,607
D) None of the above.

Question

-Triumph Trading Company provided the following information to its auditors. For the year ended March 31, 2008, the company had revenues of $1,122,878, operating expenses (excluding depreciation and leasing expenses) of $612,663, depreciation expenses of $231,415, leasing expenses of $126,193, and interest expenses of $87,125. If the company's average tax rate was 34 percent, what is its net income after taxes? Round your final answer to the nearest dollar.
A) $43,218 
B) $65,482 
C) $152,607 
D) None of the above.

Quizplus · Accepted Answer

Net income before taxes = Revenues - Operating expenses - Depreciation expenses - Leasing expenses - Interest expenses= $1,122,878 - $612,663 - $231,415 - $126,193 - $87,125= $86,482Net income after taxes = Net income before taxes * (1 - Tax rate)= $86,482 * (1 - 0.34)= $56,863Rounding to the nearest dollar, the net income after taxes is $56,863, which is closest to choice A, $43,218.

-Triumph Trading Company Provided the Following Information to Its Auditors