Question

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

Answer 1

A. 22.4%

Step-by-step 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