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A company reported the following for a given year: Sales = $5,600,000; Expenses = $3,000,000; Depreciation...

A company reported the following for a given year: Sales = $5,600,000; Expenses = $3,000,000; Depreciation = $190,000; Interest Expense = $80,000. If the corporate tax rate is 35 percent, calculate the company's net income for that year.

A. $1,638,000 B. $2,330,000 C. $1,566,500 D. $1,514,500

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Answer #1
Income Statement
Sales $        5,600,000
Less: Costs $        3,000,000
Less: Other expenses $                       -  
Less: Depreciation $            190,000
EBIT $        2,410,000
Less: Interest $              80,000
EBT $        2,330,000
Less: Tax @ 35% $            815,500
Net income $        1,514,500
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