Triumph Trading Company provided the following information to its auditors. For the year ended June 30, 2013, 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 equal to $87,125. If the company's tax rate was 30 percent, what is its profit after tax?

Question

Quizplus · Accepted Answer

Net income before tax = Revenues - Operating expenses - Depreciation expenses - Leasing expenses - Interest expenses= $1,122,878 - $612,663 - $231,415 - $126,193 - $87,125= $86,482Net income after tax = Net income before tax * (1 - Tax rate)= $86,482 * (1 - 0.30)= $60,537.40Profit after tax = Net income after tax - Preferred dividends= $60,537.40 - $0= $60,537.40

Triumph Trading Company Provided the Following Information to Its Auditors