Question

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:

Answer 1

Net Profit after tax was $800

Step-by-step explanation:

To calculate the Net Profit you don't need the 1.000 shares of common stock outstanding.

The Net Income it's detailed bellow:

$10.000 Sales

$-5.000 Cost of Goods

$-3.000 Operating Expenses

$-1.000 Interest Expenses

$1.000 Earnings Before Taxes

$-200 20% of tax rate

========

$800