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    Calculating the firm's net income

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    Art's Boutique announced that for the period ending December 31, 2011, it had revenues of $640,000. The company's costs (excluding depreciation and amortization) amounted to 75% of revenues, and Art's boutique had interest expenses of $40,000 and depreciation of 60,000. What is the firm's net income if the tax rate was 34 percent?

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    Solution Preview

    Revenues : $640,000
    Costs : 640000*75%=$480,000
    Interest : ...

    Solution Summary

    Solution describes the steps to calculate the firm's net income.