At the end of its third year of operations, the Nusa Manufacturing 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

Revenue (sales)	$4,650,000
Less: Cost of goods sold	$3,500,000
Less: Total operating expenses	$475,000
EBIT	$675,000
Less: Interest expense	$70,000
EBT	$605,000
Less: Taxes($605,000 * 0.30)	$181,500
Net profit	$423,500

jeff jeffy answered 1 year ago

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