Emery Mining Inc. recently reported $147,500 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income

Question

Mathematics

Raymond Bass

5 August, 18:40

Emery Mining Inc. recently reported $147,500 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income

+4

Answers (1)

Know the Answer?

Lydon · Answer 1

net income is $48452.81

Step-by-step explanation:

Sales = $147500

subtract operating expenses

-$75500 = $72000

subtract non - operating costs

depreciation - $10200 = $61800

-interest expense payable (16500*7,23%) $1196.25=63603.75

from profit before tax deduct income taxes = 63603.75*25%=15150.9375

Net Income is therefore $63603.75-$15150.9375 = $48452.81