Question

Minbari, Inc. shows the following information on its Y2019 income statement:

Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest expense = $50,000; Tax rate = 20%; Dividends = $30,000. The firm issued $20,000 in new equity, and used the amount to redeem $20,000 in outstanding long-term debt.

What is the Y2019 net income of Minbari, Inc.?

1. $160,000.
2. $170,000.
3. $180,000.
4. $190,000.

Answer 1

As per the Given Information the Net Income of the Minbari, Inc. is Rs. $1,70,000.

Below is the Calculation for the Net Income of the Minbari, Inc. for yera 2019.

sale	4,80,000
cost of goolds sold	(2,00,000)
Depreciation Exp	(30,000)
Intrest Exp	(50,000)
Dividend	(30,000)
Net Income	1,70,000