The after-tax profit margin for Facebook Inc. Introduction: Net income: It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share. Revenue: It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Do you know what are Keith Gill's previous projects?

Explain why long-term bonds are subject to greater interest rate risk than short-term bonds with references or practical examples.

What does it mean when a bond is referred to as a convertible bond? Would a convertible bond be more or less attractive to a bond holder than a non-convertible bond? Explain in detail with examples or academic references.

Answer 2

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Answer 6

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 7

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The after-tax profit margin for Facebook Inc.

Introduction:

Net income:

It represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 8

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 9

b.

Summary Introduction

To calculate: The ratio of cost of revenue to total revenue of Facebook Inc.

Introduction:

Cost of revenue:

Cost of revenue is the total cost of production and distribution of the goods or services to the customers. The cost of revenue is further segregated into direct cost and indirect cost.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 10

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Answer 11

d.

Summary Introduction

To calculate: The ratio of the income tax expense to the net income of Facebook Inc.

Introduction:

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firm. Every business organization is subject to income tax, if there are no exemptions available in tax law, depending on the tax slab it falls in.

Net income:

Net income is represents the organizationâ€™s valuation, which is calculated by subtracting the expenses, interest and taxes from the revenue earned from operations. The net income is used by the organization for computing earnings per share.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

Solution Summary: The author explains how to calculate the after-tax profit margin for Facebook Inc. by subtracting expenses, interest, and taxes from the revenue earned from operations.

Videos

Want to see the full answer?

Chapter 18 Solutions