Question

Colby Corporation has provided the following information: Operating revenues from customers were $207,700. Operating expenses for the store were $119,000. Interest expense was $8,700. Gain from sale of plant and equipment was $3,700. Dividend payments to Colby's stockholders were $7,700. Income tax expense was $37,000. Prepaid rent expense was 4,100. How much was Colby's net income?

Answer 1

Answer:

$46,700

Explanation:

Operating revenue

$207,700

Less:

Operating expenses

($119,000)

Operating profit

$88,700

Less:

Interest expense

($8,700)

Income tax expense

($37,000)

Net income

$43,000

Add:

Gain from sale

$3,700

Total net income

$46,700

Therefore, Colby's net income is $46,700