Question

Colby Corporation has provided the following information Operating revenues from customers were $199,700. ·Operating expenses forthe store were $111,000. Interest expense was $9,200. Gain from sale of plant and equipment was $3,300. Dividend payments to Colby's stockholders were $7,700 Income tax expense was $36,000 Prepaid rent expense was $5,000 How much was Colby's net income? a. $39,100 b. $48,300 c. $52.700 d. $46,800

Answer 1

Answer:

d. $46,800

Explanation:

Operating revenues   $199,700

Less:

Operating expenses   $111,000

Operating Profit           $88,700

Less:

Interest expense         $9,200

Income tax expense   $36,000

Net Income                 $43,500

Add:                

Gain from sale           $3,300  

Total Net Income        $46,800