Question
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
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?
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