Question

The following financial information was summarized from the accounting records of Train Corporation for the current...

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

Rails
Division
Locomotive
Division
Corporate
Total
Cost of goods sold $ 47,200 $30,720
Direct operating expenses 27,200 20,040
Sales 108,000 78,000
Interest expense $ 2,040
General overhead 18,160
Income tax 4,700


The net income for Train Corporation is

a.$35,940

b.$83,180

c.$60,840

d.$48,390

Homework Answers

Answer #1

Answer:-The net income for Train Corpoation is $35940.

Explanation:-

Train Corporation
Calculation of Net Income
Particulars Rails Division Locomotive Division Corporate Total
$ $ $
Sales 108000 78000 186000
Less:- Cost of goods sold 47200 30720 77920
0
Gross Profit 60800 47280 108080
Less:- Direct Operating expenses 27200 20040 47240
Operating Income 33600 27240 60840
Less:- Expenses
Interest expenses 2040
General overhead 18160
Income tax 4700
Net Income 35940
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