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Marrrta [24]
3 years ago
5

Emery Mining Inc. recently reported $147,500 of sales, $75,500 of operating costs other than depreciation, and $10,200 of deprec

iation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income
Mathematics
1 answer:
Molodets [167]3 years ago
6 0

Answer:

net income is $48452.81

Step-by-step explanation:

Sales =$147500

subtract operating expenses

-$75500 =$72000

subtract non- operating costs

depreciation -$10200 =$61800

-interest expense payable (16500*7,23%)$1196.25=63603.75

from profit before tax deduct income taxes =63603.75*25%=15150.9375

Net Income is therefore $63603.75-$15150.9375 = $48452.81

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