Question

For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and administrative expense of $12,051, and depreciation of $6,850. If the tax rate was 35 percent, what was the company's net income

Answer 1

The Net Income is $4416.1

Step-by-step explanation:

The net income is calculated as follows,

Sales $46967

Less:Cost of sales (17184)

Gross Profit 29783

Less:Expenses

Selling & Admin exp (12051)

Depreciation exp (6850)

Interest exp (4088)

Net income before ta 6794

tax expense (2377.9)

Net Income 4416.1