Question

Based on the following information to construct an income statement, what is the net income amount?

Interest expense= $25,000;
Sales = $950,000;
Income tax rate = 25%;
Selling and marketing expenses = $160,000;
General and administrative expenses = $200,000;
Gross profit = $550,000;
Depreciation = $30,000;
Cost of goods sold = $400,000.

Answer 1

The net income amount is $101250

The income statement is made in the explanation part.

Step-by-step explanation:

Income Statement

$ $

Sales 950000

Less:COGS (400000)

Gross profit 550000

Less:Expenses

Selling &Marketing expenses 160000

General & Admin expenses 200000

Depreciation 30000 (390000)

Operating Profit 160000

less: Interest expense (25000)

Earnings before tax 135000

less: Tax (at 25%) (33750)

Net Income 101250