Question

Use the balance sheets and information provided about revenue and expenses to answer the question. Gulf Shipping Company Balance Sheet As of December 31, 2017 (amounts in thousands) Cash 143,000 Accounts Payable 19,000 Accounts Receivable 41,000 Debt 32,000 Inventory 58,000 Other Liabilities 40,000 Property Plant & Equipment, Gross 210,000 Total Liabilities 91,000 Accumulated Depreciation 62,000 Paid-In Capital 77,000 Property Plant & Equipment, Net 148,000 Retained Earnings 229,000 Other Assets 7,000 Total Equity 306,000 Total Assets 397,000 Total Liabilities & Equity 397,000 Gulf Shipping Company Balance Sheet As of March 31, 2018 (amounts in thousands) Cash 145,000 Accounts Payable 24,000 Accounts Receivable 39,000 Debt 41,000 Inventory 65,000 Other Liabilities 28,053 Property Plant & Equipment, Gross 210,000 Total Liabilities 93,053 Accumulated Depreciation 63,200 Paid-In Capital 77,000 Property Plant & Equipment, Net 146,800 Retained Earnings 230,747 Other Assets 5,000 Total Equity 307,747 Total Assets 400,800 Total Liabilities & Equity 400,800 Revenue and expenses information from January 1 to March 31, 2018 were: Sales Revenue of $7,900,000 COGS of 20% of Sales Interest of $100,000 Other Expenses of $300,000 SG&A of $1,580,000 Tax Rate of 38% What is the net income in the first quarter of 2018?

Answer 1