Assume sales are $2,220; cost of goods sold is $1,055,general expenses are $630,depreciation expense is $210,and the tax rate is 35 percent.What is the net income amount if the firm paid $40 in interest expense?

Name: Assume sales are $2,220; cost of goods sold is $1,055,general expenses are $630,depreciation expense is $210,and the tax rate is 35 percent.What is the net income amount if the firm paid $40 in interest expense?
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Question

Quizplus · Accepted Answer

Net Income = (1 - 0.35)($2,220 - $1,055 - $630 - $210 - $40)= $185.25

Assume Sales Are $2,220; Cost of Goods Sold Is $1,055,general