Maxwell’s annual financial statements show operating profit before interest and tax of $524,425 thousand, net income of $321,202 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $110,586 thousand.  Assume Maxwell’s statutory tax rate for the year is 37%. Maxwell’s effective tax rate is:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Maxwell’s annual financial statements show operating profit before interest and tax of $524,425 thousand, net income of $321,202 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $110,586 thousand.  Assume Maxwell’s statutory tax rate for the year is 37%.

Maxwell’s effective tax rate is: 

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Effective Tax Rate: The effective tax rate is calculated as the Provision for income tax is divided by operating profit before interest and tax less non-operating profit before tax. 

 

Effective Tax Rate = provision for income taxOperating profit before interest and tax - non operating profit before tax×100

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