Question

Schluster hardware, inc., had a gross profit of $380,000, operating expenses of $210,000, and income taxes of $48,000. what is schluster's net income after taxes?

Answer 1

$122,000 is Shulster's net income

To find the net income, subtract expenses and taxes from the gross income.

380,000 - 210,000 - 48,000 = 122,000

Answer 2

$122,000

Step-by-step explanation:

Gross profit is the difference between the revenue and cost of sales.

The gross profit less the operating expenses gives operating profits while a further deduction of the income taxes gives the net income after tax.

Going by the analysis above,

gross profit = $380,000, operating expenses = $210,000, and income taxes = $48,000

net income after tax = $380,000 - $210,000 - $48,000

= $122,000

Schluster's net income after taxes is $122,000