Firm ABC had operating profits of $100,000, taxes of $17,000, interest expense of $34,000, and preferred dividends of $5,000. What was the firm's net profit after taxes?
A) $66,000
B) $49,000
C) $44,000
D) $83,000

Question

Quizplus · Accepted Answer

Net profit after taxes can be calculated as follows: 
Operating profit - Taxes - Interest - Preferred dividends = Net profit after taxes 
$100,000 - $17,000 - $34,000 - $5,000 = $44,000 
Therefore, the correct answer is B.

Firm ABC Had Operating Profits of $100,000, Taxes of $17,000