The Company XYZ had sales of $10,000 in 2019. The cost of goods sold was $8,000....

The Company XYZ had sales of $10,000 in 2019. The cost of goods sold was $8,000. There was no other expense or revenue in 2019. If the tax rate of the company is 40%, what will be the net income for company XYZ in 2019?

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Expert Solution

Ans : Computation of Net Income

Sales	$10,000
Less : Cost of goods sold	($8,000)
Gross Profit	$2,000
Less : Taxes @40% (2000*40%)	($800)
Net Income	$1,200

Ans: The Net Income for company XYZ in 2019 will be $1,200.

jeff jeffy answered 1 year ago

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