Question

For the past year, Momsen, Ltd., had sales of $45,797, interest expense of $3,620, cost of goods sold of $16,134, selling and administrative expense of $11,481, and depreciation of $5,980. If the tax rate was 35 percent, what was the company's net income?

Answer 1

Answer:

$5,578.3

Explanation:

The income statement shows the net income of an entity which is the net difference between the sales and expenses including taxes incurred during the period.

Given sales of $45,797, interest expense of $3,620, cost of goods sold of $16,134, selling and administrative expense of $11,481, and depreciation of $5,980. If the tax rate was 35 percent,

Profit before tax = $45,797 - $16,134 - $3,620 - $11,481 - $5,980

= $8,582

Tax expense = 35% of $8,582

= $3,003.70

Company's net income  = $8,582 - $3,003.70

= $5,578.3

Answer 2

Answer:

Net income is $5,578.30

Explanation:

Please refer to the attached file