Please answer both a and bI will provide you positive response Operating revenues5,500Cost of sales3,000Other operating expenses1,500Operating income before taxATax as reportedBTax benefit of interest expenseOperating income after taxDInterest expense before taxETax benefit of interest expense(E).Interest expense after tax60Comprehensive income5001. Identify the missing numbers.2. Calculate the fırm's effective tax rate on operating income

Solution: (1). Missing figures in Reformulated Income Statement Particulars Amount…

Answered: Operating revenues 5,500 Cost of sales…

Business

Accounting

Operating revenues 5,500 Cost of sales 3,000

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 7P

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Question

Please answer both a and b

I will provide you positive response

Operating revenues
5,500
Cost of sales
3,000
Other operating expenses
1,500
Operating income before tax
A
Tax as reported
B
Tax benefit of interest expense
Operating income after tax
D
Interest expense before tax
E
Tax benefit of interest expense
(E).
Interest expense after tax
60
Comprehensive income
500
1. Identify the missing numbers.
2. Calculate the fırm's effective tax rate on operating income

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