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 equal to $87,125. If the company's tax rate was average 34 percent, what is its net income after taxes?

Question

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= $66,482Net income after taxes = Net income before taxes * (1 - Tax rate)= $66,482 * (1 - 0.34)= $43,218

Triumph Trading Company Provided the Following Information to Its Auditors