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

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Business

Quinn

17 December, 02:57

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

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Kamari Ford · Answer 1

Net operating income = 567,031.25

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