At the end of its third year of operations, the NusaManufacturing Company had $4,650,000 in...

At the end of its third year of operations, the Nusa Manufacturing Company had $4,650,000 in revenue (sales); $3,500,000 in cost of goods sold; $475,000 in total operating expenses; $70,000 in interest expense and had a tax liability equal to 30% of the firm’s taxable income. Construct an income statement for the year and find the net profit?

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Expert Solution

The income statement is presented as follows:

INCOME STATEMENT
Sales	$ 4,650,000
Cost of goods sold	$ 3,500,000
Gross Profit	1,150,000
Total operating expenses	$ 475,000
EBIT	$ 675,000
Interest expense	$ 70,000
EBT	$ 605,000
Tax expense	$ 181,500
Net Profit	$ 423,500

jeff jeffy answered 1 year ago

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