Question
In: Finance
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?
Solutions
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.
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