Respuesta :
Answer:
32.82%
Explanation:
The computation of the average tax rate is shown below:
Sales    $843,800
Less:
Cost    -$609,900
Interest  -$38,200
Depreciation - $76,400
Profit before tax $119,300
Less: dividend    -$18,000
Less: Increased in retained earnings -$62,138
Total tax $39,162
And, the profit before tax is $119,300
So, the average tax rate would be
= (Total tax ÷ Profit before tax) × 100
= ($39,162 ÷ $119,300) × 100
= 32.82%
This is the answer but the same is not provided in the given options
Answer:
(A) 32.83%
Explanation:
- Sales and Costs are given as $ 843,800 and $609,900 respectively. From this, we can find Earning before Interest, Tax and Depreciation (EBITDA).
    EBITDA= Sales - Costs
   =  $ 843,800 - $ 609,900
   =  $ 233,900
   2. We get EBITDA of $ 233,900. From this we have to deduct       depreciation first and then interest amount, both of which are given in the problem.
EBITDA - Depreciation= $ 233,900 - $ 76,400
= $ 157,500
We get Earning before Interest and Tax (EBIT) of $ 157,500.
From the EBIT, we will deduct interest amount of $ 38,200.
Hence, Earning / Profit before Tax will be EBIT - Interest.
Profit before Tax = $ 157,500 - $ 38,200
= $ 119,300
   3. Let us assume tax payment of $ X. We have found Profit Before Tax (PBT) of $ 119,300. From PBT and tax payment, we can find Profit After Tax (PAT) as follows -
PAT= PBT - Tax paid
= $ (119,300 - X )
   4. We are given dividends of $ 18,000. Dividends for the equity shareholders are payable on PAT. If we minus dividends from PAT, we will get Retained Earnings.
Thus, Retained Earnings = PAT - Dividends
= $ 119,300 - $ X - $ 18,000
= $ 101,300 - X
   5. Retained Earnings are given in the problem as $ 62,138.
Hence,
$ 101,300 - X = $ 62,138
X = $ 101,300 - $ 62,138
X= $ 39,162
   6. Thus, taxes of $ 39,162 are paid. These taxes are paid on Profit Before Tax (PBT). Recall that PBT was $ 119,300 as calculated in Step 2.
Hence, tax paid will be -
Tax % ( let's say T%) * PBT = Tax Amount
T% = Tax Amount / PBT
   = $ 39,162 i.e. X / $ 119,300
   = 0.32826
   = 32.83 % (approx.)
