Question

For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and administrative expense of $12,051, and depreciation of $6,850. If the tax rate was 35 percent, what was the company's net income

Answer 1

Answer:

The Net Income is $4416.1

Explanation:

The net income is calculated as follows,

Sales                            $46967

Less:Cost of sales       (17184)

Gross Profit                   29783

Less:Expenses

Selling & Admin exp     (12051)

Depreciation exp           (6850)

Interest exp                   (4088)  

Net income before ta     6794

tax expense                 (2377.9)

Net Income                   4416.1