Question

The Willie Company has provided the following information: Operating expenses were $345,000; Income from operations was $415,000; Net sales were $1,100,000; Interest expense was $71,000; Loss from sale of investments was $87,000; Income tax expense was $58,000. What was Willie's net income

Answer 1

Answer:

net income = $199,000

Explanation:

In order to calculate net income, we will first start with EBIT or income from operations and then subtract income tax expense, loss from sale of investments and finally income taxes:

• EBIT = $415,000
• Interest expense = $71,000
• Loss from sale of investments = $87,000
• Income tax expense = $58,000
• Net income = $199,000