Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's net income?

Question

Quizplus · Accepted Answer

Net Income = Sales - Cost of Goods Sold - Selling Expenses - Depreciation - Interest Expense - Taxes
Net Income = $13,500 - $4,000 - $3,500 - $2,000 - $2,000 - (34% x $2,000)
Net Income = $6,000 - $680
Net Income = $5,320
Therefore, the answer is D) $1,320.

Acme Pest Control Has Sales of $13,500, Cost of Goods