Homework Help is Here – Start Your Trial Now!
Business
Finance
Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 115 125 COGS (30) (31) Gross Profit 85 94 Overhead (32) (41) Pre-tax Income 53 53 Net Income = $[?] Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. %3D Enter

Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 115 125 COGS (30) (31) Gross Profit 85 94 Overhead (32) (41) Pre-tax Income 53 53 Net Income = $[?] Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. %3D Enter

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 115 125 COGS (30) (31) Gross Profit 85 94 Overhead (32) (41) Pre-tax Income 53 53 Net Income = $[?] Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. %3D Enter Copyright 2003 - 2021 Acellus Corporation. All Rights Reserved,
Transcribed Image Text:Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%. Q1 (x1000) Q2(x1000) Net Sales 115 125 COGS (30) (31) Gross Profit 85 94 Overhead (32) (41) Pre-tax Income 53 53 Net Income = $[?] Multiply your result by 1000 before entering. For example: 1.23 (x1000) = $1,230. %3D Enter Copyright 2003 - 2021 Acellus Corporation. All Rights Reserved,
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
**Understanding Corporate Income Taxes** *Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%.* ### Income Statement | | Q1 (x1000) | Q2 (x1000) | |----------------------|------------|------------| | **Net Sales** | 115 | 175 | | **COGS** | (33) | (35) | | **Gross Profit** | 82 | 140 | | **Overhead** | (32) | (51) | | **Pre-tax Income** | 50 | 89 | ### Instructions: 1. Calculate the **Net Income** by applying the 21% corporate income tax rate to the Pre-tax Income. 2. Multiply your result by 1000 before entering. **For example:** Net Income = 1.23 (x1000) = $1,230 ### Explanation of Key Terms: - **Net Sales**: The total revenue from sales after deducting returns, allowances for damaged or missing goods, and any discounts allowed. - **COGS (Cost of Goods Sold)**: The direct costs attributable to the production of the goods sold in a company. - **Gross Profit**: The difference between Net Sales and COGS. - **Overhead**: Ongoing business expenses not directly attributed to creating a product or service. - **Pre-tax Income**: The income that remains after subtracting all expenses, except for taxes. - **Net Income**: The actual profit after all expenses and taxes have been deducted. *To find Net Income for Q1:* 1. Calculate the tax: \( \text{Tax} = \text{Pre-tax Income} \times 0.21 \) 2. Subtract the tax from the Pre-tax Income. Let's calculate it: Tax for Q1 = \( 50 \times 0.21 = 10.5 \) Net Income for Q1 = \( 50 - 10.5 = 39.5 \) When multiplied by 1000, Net Income = $39,500
Transcribed Image Text:**Understanding Corporate Income Taxes** *Calculate the net income after corporate income tax is paid for Quarter 1 from the following income statement. Use a corporate income tax rate of 21%.* ### Income Statement | | Q1 (x1000) | Q2 (x1000) | |----------------------|------------|------------| | **Net Sales** | 115 | 175 | | **COGS** | (33) | (35) | | **Gross Profit** | 82 | 140 | | **Overhead** | (32) | (51) | | **Pre-tax Income** | 50 | 89 | ### Instructions: 1. Calculate the **Net Income** by applying the 21% corporate income tax rate to the Pre-tax Income. 2. Multiply your result by 1000 before entering. **For example:** Net Income = 1.23 (x1000) = $1,230 ### Explanation of Key Terms: - **Net Sales**: The total revenue from sales after deducting returns, allowances for damaged or missing goods, and any discounts allowed. - **COGS (Cost of Goods Sold)**: The direct costs attributable to the production of the goods sold in a company. - **Gross Profit**: The difference between Net Sales and COGS. - **Overhead**: Ongoing business expenses not directly attributed to creating a product or service. - **Pre-tax Income**: The income that remains after subtracting all expenses, except for taxes. - **Net Income**: The actual profit after all expenses and taxes have been deducted. *To find Net Income for Q1:* 1. Calculate the tax: \( \text{Tax} = \text{Pre-tax Income} \times 0.21 \) 2. Subtract the tax from the Pre-tax Income. Let's calculate it: Tax for Q1 = \( 50 \times 0.21 = 10.5 \) Net Income for Q1 = \( 50 - 10.5 = 39.5 \) When multiplied by 1000, Net Income = $39,500
Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Forecasting Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS