Taxes
When business professionals examine the financial statements of a company they may buy to merge with an existing company, the company's tax information is not that important because the company will be part of a bigger conglomerate that has its own tax rate. Instead, business professionals look at income before taxes, or pretax net income, to evaluate the company's financial situation.
Typically, the income statement shows tax expense as a separate line from other expenses so management can analyze and review financial information.
