Question

net box Inc. has sales of 634,000, costs of goods sold is 328,000, depreciation expense of 73,000, administrative expense of 27,000 interest expense of 38,000 and a tax expense of 40,000 what is the earnings before tax expense for the firm?

and the net income

Answer 1

The earnings before tax is computed as follows:

= sales - costs of goods sold - depreciation expense - administrative expense - interest expense

= 634,000 - 328,000 - 73,000 - 27,000 - 38,000

= 168,000

The net income is computed as follows:

= sales - costs of goods sold - depreciation expense - administrative expense - interest expense - tax expense

= 634,000 - 328,000 - 73,000 - 27,000 - 38,000 - 40,000

= 128,000

Feel free to ask in case of any query relating to this question

answered by: anonymous