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Calculate net income if sales are $131,338, operating cost $76,505, depreciation is $12,538, and the firm...

Calculate net income if sales are $131,338, operating cost $76,505, depreciation is $12,538, and the firm also borrowed $10,000 at 7% interest and has a tax rate of .35

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Answer #1
Particulars Amount
Sales $    1,31,338
Operating Cost $       76,505
Depreciation $       12,538
EBIT $       42,295
Less : Interest $             700 10000*7%
EBT $       41,595
Less : Taxes $       14,558 41595*35%
Net Income $       27,037

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