Question

During the current fiscal year, anshuman company had revenues of $500,000, cost of goods sold of $360,000, and an income tax rate of 35 percent on income before income taxes. what was anshuman company's current year net income?

Answer 1

To calculate Anshuman Company's net income for the current fiscal year, you can follow these steps:

1. Calculate Income Before Income Taxes:
Income Before Income Taxes = Revenues - Cost of Goods Sold
Income Before Income Taxes = $500,000 - $360,000 = $140,000

2. Calculate Income Tax:
Income Tax = Income Before Income Taxes * Tax Rate
Income Tax = $140,000 x 0.35 = $49,000

3. Calculate Net Income:
Net Income = Income Before Income Taxes - Income Tax
Net Income = $140,000 - $49,000 = $91,000

Anshuman Company's net income for the current fiscal year is $91,000.