Question

Griffin's Goat Farm, Inc., has sales of $604,000, costs of $255,000, depreciation expense of $53,000, interest expense of $35,000, and a tax rate of 23 percent. What is the net income for this firm

Answer 1

Answer:

The answer is $200,970

Explanation:

Solution

Given that

Now

Sales =$604,000

Costs= $255,000

Depreciation=$53,000

Thus

EBIT (Earnings before taxes and interest)=$296,000

The interest Expense = $35,000

Taxable income =$200,970

Taxes($261,000 * 23% =$60,030

The net income = $200,970

Therefore the net income for the firm is $200,970