Profit after tax was $84000.
This was found by decreasing the original value (profit before tax) at a tax rate of 30%.
Can someone please help me find this value =)
Divide 84000 by .70 which will give you $120000.
You can check you answer by deducting 30% of $120000 which will give you $84000
When you get questions like that, all you need to do is deduct the % (ie 30%) from 100% ( or 1) and divide the after tax profit by the answer - in this case 70% .
The previous post is correct. The following is the basic formula.
Profit After Tax = Profit Before Tax * (1-Tax Rate)
The following formula is derived by dividing both sides by (1-Tax Rate).
Profit Before Tax = Profit After Tax / (1-Tax Rate)