Complete question :
During the year, belyk paving co. had sales of $2,384,000. cost of goods sold, administrative and selling expenses, and depreciation expense were $1,441,000, $436,600, and $491,600, respectively. in addition, the company had an interest expense of $216,600 and a tax rate of 35 percent. (ignore any tax loss carryback or carryforward provisions.) (enter your answer as directed, but do not round intermediate calculations.)
What is the company's net income?
Answer:
($201,200)
Step-by-step explanation:
Given the following :
Sales made = $2,384,000
Cost of goods sold = $1,441,000
Administrative and selling expenses = $436,600
Depreciation Expense = $491,600
Interest expense = $216,600
Tax rate = 35%
Gross profit : Sales made - cost of goods sold
Gross profit = (2,384,000 - 1,441,000) = $ 943,000
Expenses : (Depreciation Expense + Administrative and selling expense)
Expenses : ( $491,600 + $436,600) = $928,200
Operating income = Gross profit - expenses
Operating income = (943,000 - 928,200) = 14,800
Interest expense = $216,600
Net income = Operating income - interest expense
Net income = $14,800 - $216,600
Net income = - $201,200
Net income = $(201,200)