Answer:
The firm's net income was $41,017.4375
Explanation:
The company has $16,500 of outstanding bonds that carry a 7.25% interest rate.
The interest expense of the company = $16,500 x 7.25% = $1,196.25
Income before tax = Sales - cost of goods sold - depreciation expense - interest expense = $150,000 - $75,500 - $10,200 - $1,196.25 = $63,103.75
Emery Mining Inc.'s income tax rate was 35%.
Tax = Income before tax x 35% = $63,103.75 x 35% = $22,086.3125
Net income = Income before tax - Tax = $63,103.75 - $22,086.3125 = $41,017.4375
