Mattel Inc.'s2016 financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,022 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $109,491 thousand. Assume Mattel's statutory tax rate for 2016 is 37%. Mattel's 2016 effective tax rate is: Select one: A. 22.4% B. 37.0% C. 19.4% D. 17.7% E. None of the above

Question

Adriana Mcintosh

Business

8 February, 07:50

Mattel Inc.'s2016 financial statements show operating profit before interest and tax of $519,233 thousand, net income of $318,022 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $109,491 thousand. Assume Mattel's statutory tax rate for 2016 is 37%. Mattel's 2016 effective tax rate is: Select one: A. 22.4% B. 37.0% C. 19.4% D. 17.7% E. None of the above

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Desiree Hester · Answer 1

A. 22.4%

Explanation:

Income TAXES

Operating profit before interest and tax $ 519.233

Net nonoperating expense before tax - $ 109.491

Subtotal $ 409.742

Provision for income taxes - $ 91.720 - 22,4%

Net Income $ 318.022