Papa Roach Exterminators, Inc., has sales of $554,000, total costs of $245,000, depreciationexpense of $40,000, interest expense of $27,000, and an average tax rate of 35 percent.What is the net income for the firm?a. $48,100b. $224,300c. $197,300d. $157,300e. $184,300

Consider,Used formulas:Earnings Before tax = Sales - Total cost - Depreciation - Interest…

Answered: Papa Roach Exterminators, Inc., has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Papa Roach Exterminators, Inc., has sales of $554,000, total costs of $245,000, depreciation expense of $40,000, interest expense of $27,000, and an average tax rate of 35 percent. What is the net income for the firm? a. $48,100 b. $224,300 c. $197,300 d. $157,300 e. $184,300