William Blue Pty Ltd has sales of $1600 for the financial year ended 30 June 2010.The associated cost of goods sold is $800.The depreciation charge for the year is $50 and interest paid was $80.If the average tax rate is 30% what is the net income for the year?

Question

Quizplus · Accepted Answer

First, we need to find the total expenses for the year. 
Total expenses = Cost of goods sold + Depreciation + Interest paid 
Total expenses = $800 + $50 + $80 = $930

Next, we can find the taxable income by subtracting the total expenses from the sales: 
Taxable income = Sales - Total expenses 
Taxable income = $1600 - $930 = $670

Finally, we can find the net income by applying the tax rate: 
Net income = Taxable income x (1 - Tax rate) 
Net income = $670 x (1 - 0.3) = $469

Therefore, the correct answer is C) $469.

William Blue Pty Ltd Has Sales of $1600 for the Financial