Question

Common Stock Dividends Paid $29,554 Cost of Goods sold $133,608 Depletion Expense $21,418 Preferred Stock Dividends Paid $16,172 Sales $322,000 Calculate Gormet's net income.

Answer 1

Gormet's net income is $166,974.00

Step-by-step explanation:

The formula for computing net income is shown below prior to the determination of net income:

net income=Sales-Cost of Goods sold-Depletion Expense

Sales=$322,000

Cost of Goods=$133,608

depletion expense=$21,418

net income=$322,000-$133,608-$21,418

net income=$166,974.00