Question

Use the information below to answer the following questions about the Canary Cruises Corporation. The Canary Cruises Corporation Income Statement Accounts for the year ending December 31, 2017 Account Balance Cost of goods sold $345,000 Interest expense $79,000 Taxes $57,100 Revenue $836,000 Selling, general, and administrative expenses $93,000 Depreciation $126,000 Refer to the Canary Cruises Corporation Income Statement Accounts. What is the net income for the Canary Cruises Corporation for 2017

Answer 1

Answer:

$135,900

Explanation:

The net income is computed as follows;

Revenue - Costs of goods sold - Selling and general expenses - depreciation - interest expense - taxes

Net income = $836,000 - $345,000 - $93,000 - $126,000 - $79,000 - $57,100

= $135,900

Answer 2

Answer:

Net income = $135,900

Explanation:

Canary Cruises Corporation

Income Statement

For the year ended December 31, 2017

Revenue $836,000

Cost of goods sold ($345,000)

Gross profit = $491,000

S&A expenses ($93,000)

Depreciation ($126,000)

EBIT = $272,000

Interest expense ($79,000)

Net income before taxes = $193,000

Taxes ($57,100)  

Net income = $135,900