Question

a franchise has a net income before taxes of $650,000 .the company's treasurer estimates that 30% of the company's net income will go to federal & state taxes.how much will the franchise have left

Answer 1

To calculate the amount the franchise will have left after paying federal and state taxes, we need to find 70% of the net income before taxes, as 30% goes to taxes.

Step 1: Find the amount going to taxes:

Tax Amount = Net Income before Taxes * Tax Rate

Tax Amount = $650,000 * 0.30

Tax Amount = $195,000

Step 2: Find the amount left after paying taxes:

Amount Left = Net Income before Taxes - Tax Amount

Amount Left = $650,000 - $195,000

Amount Left = $455,000

After paying federal and state taxes, the franchise will have $455,000 left.