Question

In: Finance

At the end of its third year of​ operations, the Sandifer Manufacturing Co. had $4,500,000 in​...

At the end of its third year of​ operations, the Sandifer Manufacturing Co. had $4,500,000 in​ revenues, $3,375,000 in cost of goods​ sold, $450,000 in operating expenses which included depreciation expense of $150,000​, and a tax liability equal to 35 percent of the​ firm's taxable income. What is the net income of the firm for the​ year?

Complete the income statement for Sandifer Manufacturing​ Co.:  ​(Round to the nearest​ dollar.)

Revenues =

$

Less:

Cost of Goods Sold =

$

Equals:

Gross Profit =

$

Less:

Operating Expenses =

$

Equals:

Net Operating Income =

$

Less:

Interest Expense =

$

0

Equals:

Earnings before Taxes =

$

Less:

Income Taxes =

$

Equals:

Net Income =

$

Solutions

Expert Solution

Revenues 4500000
Less: Cost of goods sold 3375000
Gross profit 1125000
Less: Operating Expenses 450000
Net Operating Income 675000
Less: Interest Expense 0
Earnings before Taxes 675000
Less: Income Taxes 236250
Net Income 438750

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