Everybody’s Fitness's 2021 income statement is reported below (in millions of dollars) (Use corporate tax rate of 21 percent for your calculations.) Everybody’s Fitness Income Statement for 2021(in millions of dollars) Net sales (all credit)$1,385 Less: Cost of goods sold 540 Gross profits$845 Less: Other operating expenses 315 EBITDA$530 Less: Depreciation and amortization 152 EBIT$378 Less: Interest 175 EBT$203 Less: Taxes Net income$ Determine the firm’s 2021 tax liability.Tax Liability = ________Determine the firm’s 2021 net income.Net Income = ________Determine the firm’s 2021 average tax rate. (Round your answer to 2 decimal places.)Average Tax Rate = __________%Determine the firm’s 2021 marginal tax rate.Marginal Tax Rate = __________%

The EF income statement is as follows:

Answered: Everybody’s Fitness's 2021 income…

Intermediate Financial Management (MindTap Course List)

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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Everybody’s Fitness's 2021 income statement is reported below (in millions of dollars) (Use corporate tax rate of 21 percent for your calculations.)

Everybody’s Fitness Income Statement for 2021 (in millions of dollars)
Net sales (all credit)	$	1,385
Less: Cost of goods sold		540
Gross profits	$	845
Less: Other operating expenses		315
EBITDA	$	530
Less: Depreciation and amortization		152
EBIT	$	378
Less: Interest		175
EBT	$	203
Less: Taxes
Net income	$

Determine the firm’s 2021 tax liability.
- Tax Liability = ________
Determine the firm’s 2021 net income.
- Net Income = ________
Determine the firm’s 2021 average tax rate. (Round your answer to 2 decimal places.)
- Average Tax Rate = __________%
Determine the firm’s 2021 marginal tax rate.
- Marginal Tax Rate = __________%

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