Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 3-38 Tax Rates (L04) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019,
Problem 3-38 Tax Rates (L04) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assetst Long-term debt Notes payable Dividends paid Cash and marketable securities 2018 $4,200 1,800 490 350 580 240 340 310 430 6,000 1,900 990 400 880 2019 $4,300 1,900 510 380 630 240 360 345 460 6,740 2,340 510 400 330 * Taxes are paid in their entirety in the year that the tax obligation is incurred. Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. What was the firm's average tax bracket for each year? (Enter your answers as a percent rounded to 1 decimal places.) 2018 2019 Average tax rate % %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started