Question

Garden Pro Corporation has sales of $4,252,803; income tax of $404,463; the selling, general and administrative expenses of $250,164; depreciation of $344,301; cost of goods sold of $2,640,803; and interest expense of $190,540. Calculate the firm’s net income?

Answer 1

To calculate the net income of Garden Pro Corporation, subtract the cost of goods sold, selling, general and administrative expenses, depreciation, interest expense, and income tax from the total sales. The firm's net income is found to be $422,532.

Step-by-step explanation:

To calculate the net income for Garden Pro Corporation, we start with their total sales and subtract all the relevant expenses, such as the cost of goods sold (COGS), selling, general and administrative expenses (SG&A), depreciation, interest expense, and income tax.

Following the formula for net income:

• Sales: $4,252,803
• COGS: $2,640,803
• SG&A: $250,164
• Depreciation: $344,301
• Interest Expense: $190,540
• Income Tax: $404,463

The calculation is as follows:

Net Income = Sales - COGS - SG&A - Depreciation - Interest Expense - Income Tax

Net Income = $4,252,803 - $2,640,803 - $250,164 - $344,301 - $190,540 - $404,463

Net Income = $422,532

Therefore, the firm's net income is $422,532.