Answer:
Net Income = $642,000
Explanation:
Income Statement
Sales 3,000,000
Less: Cost of Goods Sold (<u>1,500,000)</u>
Gross Profit 1,500,000
Less: Administrative Expenses (150,000)
Marketing Expenses (80,000)
Depreciation Expense <u>(170,000)</u>
Operating Income 1,100,000
Less: Interest Expense <u>(30,000)</u>
Earnings before Taxes 1,070,000
Less: Taxes (40%) <u> (428,000)</u>
Net Income <u>642,000</u>