Example of Taxes Payable - Note 20
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NOTE 20 - TAXES PAYABLE (OBLIGATION)
The forecasted financial statements assume a fixed tax rate of 30%. The Company's estimated tax obligation has been calculated as follows:
| YEAR 1 | YEAR 2 | YEAR 3 | |
| Net Income Before Taxes | $98,992 | $105,759 | $116,397 |
| Tax Rate | 30% | 30% | 30% |
| Taxes Payable | $29,698 | $31,728 | $34,919 |
Taxes have set up as a payable on the balance sheet until they are paid in May of each following year.