Answer:
after-tax operating income = $650
Explanation:
given data
before tax operating income = $1,000
tax rate = 35%
to find out
after-tax operating income
solution
we get here after-tax operating income that is express as
after-tax operating income = before tax operating income ( 1 - tax rate ) ...............1
put here value we get
after-tax operating income = $1000 × ( 1 - 35% )
after-tax operating income = $1000 × ( 1 - 0.35 )
after-tax operating income = $1000 × 0.65
after-tax operating income = $650
