Question

Hogan industries sold 102 units at a selling price per unit of $63 (net sales) in 2015. the company’s cost of goods sold was $4,730 and operating expenses were $600. if hogan industries has a tax rate of 35%, what is the company’s net income for 2015 (rounded to whole dollars)?

Answer 1

The company's net income for 2015 is $712.

Step-by-step explanation:

To calculate the net income for 2015, we need to subtract the cost of goods sold and operating expenses from the net sales. The net sales are given as $63 per unit and the number of units sold is 102, so the total net sales are 102 * $63 = $6,426. The cost of goods sold is $4,730 and the operating expenses are $600. To calculate the net income, we subtract the cost of goods sold and operating expenses from the net sales: $6,426 - $4,730 - $600 = $1,096.

But since the company has a tax rate of 35%, we need to calculate the amount of taxes it needs to pay. To do this, we multiply the net income by the tax rate: $1,096 * 0.35 = $383.6.

Finally, to calculate the net income after taxes, we subtract the amount of taxes from the net income: $1,096 - $383.6 = $712.4. Rounded to the nearest whole dollar, the company's net income for 2015 is $712.