Question

Use the following information (in thousands):

Sales revenue	¥300,000
Gain on sale of equipment	90,000
Cost of goods sold	164,000
Interest expense	16,000
Selling & administrative expenses	30,000
Income tax rate	30%

Determine the amount of net income.

¥42,000

¥21,000

¥63,000

¥126,000

Answer 1

Sales	¥        300,000
Cost of Goods Sold	¥        164,000
Gross Profit	¥        136,000
Selling & administrative expenses	¥          30,000
Operating Income	¥        106,000
Other Income (Expenses)	¥          74,000
Income before income tax	¥        180,000
Income tax expense	¥          54,000
Net Income	¥        126,000

Answer is d. ¥126,000