Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021Net sales (all credit)$595,000 Less: Cost of goods sold 227,000 Gross profits$368,000 Less: Other operating expenses 102,000 EBITDA$266,000 Less: Depreciation and amortization 16,200 EBIT$249,800 Less: Interest 83,000 EBT$166,800 Less: Taxes Net income$ Determine the firm's 2021 tax liability. Determine the firm's 2021 net income. Determine the firm's 2021 average tax rate. (Round your answer to 2 decimal places.) Determine the firm's 2021 marginal tax rate.

Corporate tax is that tax which is charged on companies on their pre-tax earnings. Each nation has…

Answered: Determine the firm's 2021 tax…

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Question

Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.)

Oakdale Fashions, Inc., Income Statement for 2021
Net sales (all credit)	$	595,000
Less: Cost of goods sold		227,000
Gross profits	$	368,000
Less: Other operating expenses		102,000
EBITDA	$	266,000
Less: Depreciation and amortization		16,200
EBIT	$	249,800
Less: Interest		83,000
EBT	$	166,800
Less: Taxes
Net income	$