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alexgriva [62]
3 years ago
6

For the past year, Momsen, Ltd., had sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and ad

ministrative expense of $11,766, and depreciation of $6,415. If the tax rate was 35 percent, what was the company's net income?
Business
1 answer:
Ivenika [448]3 years ago
6 0

Answer:

Net income= $11,412.2

Explanation:

Giving the following information:

sales of $46,382

interest expense of $3,854

cost of goods sold of $16,659

selling and administrative expense of $11,766

depreciation of $6,415

t=0.35

We need to use the following formula:

Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation

First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.

Sales= 46,382

COGS= (16,659)

Gross profit= 29,723

Selling and administrative expense= (11,766)

Interest=(3,854)

Depreciation= (6,415)

EBT= 7,688

Tax= (7,688*0.35)= (2,690.8)

Depreciation= 6,415

Net income= $11,412.2

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Answer:

a) dollar amount of the gross profit = 17000

b) dollar amount of the income from operations = 11700

c) dollar amount of the income before income tax = 11900

d) dollar amount of the net income = 8400

Explanation:

(a) Gross profit:

= Sales - Cost of goods sold

= 50,000 - 33,000

= $17,000

(b) Income from operation:

= Gross profit - Bad debt expenses - other operating expenses - Selling and administrative expenses

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(c) Income before income tax:

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3 years ago
Sweet Stuff Sugar Source ships product all over the world. Since the product it ships has a low value-to-weight ratio, transport
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Answer:

a large percentage of the total cost

Explanation:

When a product has a high value to weight ratio it means it is expensive and the weight is light. For products with low value to cash ratio they are cheap but have large weight.

Low value to weight ratio goods are more expensive to transport and they do not make up the high transportation cost because they are also cheap.

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Texarkana Company exchanged equipment that cost $85,000 and has accumulated depreciation of $29,800 and a fair value of $60,000.
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Answer:

$4,800

Explanation:

Data provided in the question:

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= $24,000

Therefore,

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