Ask Question
22 October, 13:54

Frank Town Farms has sales of $481,600, costs of $379,700, depreciation expense of $32,100, and interest paid of $8,400. The tax rate is 32%. How much net income did the firm earn for the period? A. $41,752B. $43,090C. $43,380D. $45,671E. $45,886

+2
Answers (1)
  1. 22 October, 14:34
    0
    net income = $41752

    so correct option is A. $41,752

    Explanation:

    given data

    sales price = $481,600

    costs price = $379,700

    depreciation expense = $32,100

    interest paid = $8,400

    The tax rate = 32%

    to find out

    net income did the firm earn for the period

    solution

    we get here net income that earn for the period is express as

    net income = (sales price - costs price - depreciation expense - interest paid) * (1 - tax rate) ... 1

    put here value we get

    net income = ($481,600 - $379,700 - $32,100 - $8,400) * (1 - 32%)

    net income = $41752

    so correct option is A. $41,752
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Frank Town Farms has sales of $481,600, costs of $379,700, depreciation expense of $32,100, and interest paid of $8,400. The tax rate is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers