Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a

Question

3 years ago

5

Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a

tax rate of 21 percent. What is the net income for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Business

1 answer:

Mazyrski [523] · Answer 1 · 2022-04-09T16:59:50+03:00

Answer:

$154,050

Explanation:

The computation of the net income for the firm is shown below:

Sales $634,000

Less: costs -$328,000

Less: depreciation -$73,000

EBIT -$233,000

Less: interest -$38,000

EBT 195,000

Less: tax(195,000 × 21%) -$40,950

Net income $154,050

We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered