Question

The Carla Vista Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.68 million, cost of goods sold of $812,300, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. What is the company's net income? Set up an income statement to answer the question. (Round answers to 2 decimal places, e.g. 15.25) Carla Vista Company Income Statement Amount Revenues $4 Cost of Goods Sold 2$ $4

Answer 1

Net operating income= 567,031.25

Step-by-step explanation:

Giving the following information:

sales of $1.68 million, cost of goods sold of $812,300, depreciation expenses of $175,000, and interest expenses of $89,575.

Income statement:

Sales= 1,680,000

COGS= (812,300)

Gross profit= 867,700

Depreciation= (175,000)

Interest expense= (89,575)

Earning before tax (EBT)= 603,125

Tax= (603,125*0.35)= (211,093.75)

Depreciation= 175,000

Net operating income= 567,031.25