Question: Construct a common-size income statement for AHS. In this statement, what will be the value for taxable income? a. 11.21% b. 17.25% c. 16.60% d.

Construct a common-size income statement for AHS. In this statement, what will be the value for taxable income?

a. 11.21%

b. 17.25%

c. 16.60%

d. $1,660

AHS INC. 2007 Income Statement (S in millions) Net sales S 9625

Cost of goods sold 5225 Depreciation 1890 Earnings before interest and taxes

AHS INC. 2007 Income Statement (S in millions) Net sales S 9625 Cost of goods sold 5225 Depreciation 1890 Earnings before interest and taxes $ 2510 Interest paid 850 Taxable income S 1660 Taxes (35%) Net income 581 S 1079 Dividends $ 679 Addition to retained earnings 400 Figure 4-7 AHS income statement.

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