SUBJECT = COST ACCOUNTElgin Battery Manufacturers had sales of $870,000 in 2009and their cost of goods sow represented 63 percent ofsates. Selling and administrative expenses were 11 percentof sales. Depreciation expense was $14,000 and interestexpense for me year was $14,000. The firm's tax rate is 26percent.What is the dollar amount of taxes paid?a) $226,000b) $99.718c) $51.532d) $55.172

Step 1: Determine Gross ProfitThe cost of goods sold (COGS) is 63% of sales, so the gross profit is…

Answered: SUBJECT = COST ACCOUNT Elgin Battery…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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