# Nimitz Rental Company provided the following information to its auditors. For the year ended...

Nimitz Rental Company provided the following information to its auditors. For the year ended March 31, 2014, the company has revenues of $880,700, general and administrative expenses of$368,600, depreciation expenses of $131,455, leasing expenses of$108,195, and interest expenses equal to $78,122. If the company's average tax rate is 34%, what is its net income after taxes? (Round intermediate calculations and final answer to the nearest whole dollar.) ## Net Income: Net Income refers to the total direct and indirect earnings of the company for a period after considering all the direct and indirect expenses related to the period. The expenses also include the interest and taxes. ## Answer and Explanation: The net income of the company is as follows: Revenues =$880,700.00

Less: General expenses = $368,600.00 Less: Leasing Expenses =$108,195.00

Less: Depreciation = $131,455.00 Earnings before interest and taxes (EBIT) =$272,450.00

Less: Interest = $78,122.00 Earnings before tax (EBT) =$194,328.00

Less: Tax @ 34% = $66,071.52 Net Income =$128,256.48

#### Learn more about this topic: What Is Net Income? - Definition & Formula

from OSAT Business Education (CEOE) (040): Practice & Study Guide

Chapter 69 / Lesson 5
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