Amy's Dress Shoppe has sales of $421,000 with costs of $342,000. Interest expense is $18,000 and depreciation is $33,000. The tax rate is 34 %. What is the net income?

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting all expenses and taxes from sales. Here, the calculation is: Sales ($421,000) - Costs ($342,000) - Depreciation ($33,000) - Interest Expense ($18,000) = $28,000 before tax. Tax is 34% of $28,000, which is $9,520. So, $28,000 - $9,520 = $18,480 net income.

Amy's Dress Shoppe Has Sales of $421,000 with Costs of $342,000