Maxwellâs annual financial statements show operating profit before interest and tax of $508,848 thousand, net income of $311,662 thousand, provision for income taxes of $91,720 thousand and net nonoperating expense before tax of $107,301 thousand. Assume Maxwellâs statutory tax rate for the year is 37%. Maxwellâs effective tax rate is:

22.84%

Explanation:

Operating profit before interest and tax = $508,848

Less: net nonoperating expense before tax = $107,301

Earning before tax = $508,848 - $107,301 = $401,547

Provision for income taxes = $91,720

Effective tax rate = Provision for income taxes / Earning before tax × 100

= 91720/401547 × 100

= 0.2284 × 100

= 22.84%

The Answer is the digital revolution!

Explanation: