Calculation of tax raft€™s A multinational computer equipment manufacturer reported the following amounts for t recent years 4in millions of U.S. dollars). The firm applies U.S. GAAP.
a. Compute the ratio of net income divided by revenues for each sear.
b. Compute the ratio of income before taxes divided by revenues for each year.
c. Compute the ratio of income tax expense divided by income before taxes, a ratio called the effective tax rate.
d. What do these ratios suggest as to the principal reason for the change in profitability between 2007 and2008?

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2007 2008 Revenues S 88,396 (76,862) S 87,548 (75,791) Expenses . Income Before Income Taxes S 11,534 $ 11,757 Income Tax Expense Net Income (3,441) $ 8,093 (4,045) $ 7,712