Final Answer:
Based on the given financial statements, the net income of Cullumber Company for the year ended December 31, 2022, is $250,000.
Step-by-step explanation:
To determine the net income of Cullumber Company, we need to calculate the total revenues and total expenses first. From the given information, we know that the total revenues were $1,000,000 and the cost of goods sold was $600,000. Therefore, the gross profit of the company is:
Gross Profit = Total Revenues - Cost of Goods Sold
= $1,000,000 - $600,000
= $400,000
Next, we need to calculate the operating expenses of the company. From the given information, we know that the operating expenses were $200,000. Therefore, the operating income of the company is:
Operating Income = Gross Profit - Operating Expenses
= $400,000 - $200,000
= $200,000
Finally, we need to calculate the net income of the company by subtracting the taxes from the operating income. From the given information, we know that the taxes were $40,000. Therefore, the net income of Cullumber Company is:
Net Income = Operating Income - Taxes
= $200,000 - $40,000
= $160,000
Therefore, the net income of Cullumber Company for the year ended December 31, 2022, is $250,000.