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Homework answers / question archive / You have been provided with the following information for Jeep Inc
You have been provided with the following information for Jeep Inc.: 00 R 50 000 Interest income 2 030 000 Income from operations 1 400 000 Net profit (after tax) The firm's tax rate is 30%. Calculate the interest expense.
Net profit before tax
= 1,400,000*100/70
= 2,000,000
Net profit before tax = Income from operation + interest income - interest expense
2,000,000 = 2,030,000 + 50,000 - interest expense
Interest expense = 80,000
