Johnson Foods Company had a before-tax profit of $250,000 after deducting interest expenses of $18,000. The company’s total assets is $1,875,000. What is the return on assets before finance costs and taxation for the company?

Johnson Foods Company had a before-tax profit of $250,000 after deducting interest expenses of $18,000. The company’s total assets is $1,875,000. What is the return on assets before finance costs and taxation for the company?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...

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		13.33%.
		0.9%.
		12.37%.
		14.29%.

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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