Financial Management Solution to problem 2-4 A

PATTS Inc-Corporate Incom Tax

 Sales                          $   6000,000
CGS and Cash
OPerating Expense         5600,000
Operating profit              4400,000
Interest Expense                  30,000    
Taxable Income             $   370,000

Tax Liability:  $

50,000 X 0.15= 7500
25,000 X 0.25= 6250
25,000 X 0.34= 8500
235,000X 0.39= 91650
35,000 X 0.34 = 11900

$ 370,000       =  $125,800