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Jackson Company's recent balance sheet (fiscal year 2021) reported average equity of $165,000 and average total assets of $389,000. Assume that the company's statutory
Jackson Company's recent balance sheet (fiscal year 2021) reported average equity of $165,000 and average total assets of $389,000. Assume that the company's statutory tax rate is 35%. Jackson's recent income statement showed the following): Jackson Company Income Statement Net sales Cost of products sold $275,000 160,000 Selling, general and administrative expense 68,000 Goodwill and indefinite lived intangible asset and impairment charges 4,000 Operating income 43,000 Interest expense 2,500 Other non-operating expense, net 750 Earnings before income taxes 39,750 Income taxes Net earnings from continuing operations Net earnings from discontinued operations Net earnings Show all calculations. a) Calculate the income tax rate on earnings before income taxes, to the nearest tenth of a percent. b) How much is earnings without taxes (including discontinued operations)? c) Calculate ROE and ROA, to the nearest tenth of a percent 11,530 28,220 3,000 $ 31,220
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