Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

Question

Quizplus · Accepted Answer

Net profit after tax = (Sales revenue - Cost of goods sold - Operating expenses - Interest expense) * (1 - Tax rate) = ($11,000 - $5,000 - $3,000 - $1,000) * (1 - 0.20) = $1,600.

Suppose Ningbo Steel Had Sales Revenue of $11,000 Sales Revenue