The income statement of XYZ company is shown below. The firm faces a tax rate of...

 

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The income statement of XYZ company is shown below. The firm faces a tax rate of 30%. Income Statement 22,700 Revenues Operating expenses (18,300) Interest expense (100) Interest income 200 (1,500) Provision for income taxes Net Income 3,000 Preferred dividends Net Income available to common 2,900 If we reformulate the income statement of the above firm, what is the after tax net financial income? a. -$30 b. $100 c. $130 e. none of the above Ⓒd. $70 (100) The income statement of XYZ company is shown below. The firm faces a tax rate of 30%. Income Statement 22,700 Revenues Operating expenses (18,300) Interest expense (100) Interest income 200 (1,500) Provision for income taxes Net Income 3,000 Preferred dividends Net Income available to common 2,900 If we reformulate the income statement of the above firm, what is the after tax net financial income? a. -$30 b. $100 c. $130 e. none of the above Ⓒd. $70 (100)

Answer rating: 100% (QA)

The answer is option e and the justification for this is as follows The ... View the full answer