You felt the need for a change and now youre a new partner for Bills Big Burger. Bill wants to know what his estimated taxes will be for the upcoming year. He found out you took a finance class at TJC and figures you could help him out.

Here is the financial information for Bill's Big Burger: (fill in the incomplete income statement)

Sales $200,000

Cost of goods sold $ 50,000

Net sales $ _______________

Expenses:

Rent $20,000

Salaries $30,000

Insurance $2,000

Advertising $10,000

_________________________________

EBIT $ ____________

Taxes $ ____________

Net income $ ____________

Tax rates:

$0-$5,000 5%

$5,000 - $10,000 10%

$10,000 - $50,000 15%

$50,000 - $100,000 20%

a. Net Sales?

b. EBIT?

c. Taxes?

d. Net income?