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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