Question

Use the balance sheets and information provided about revenue and expenses to answer the question.

Siam Traders Balance Sheet As of December 31, 2018 (amounts in thousands)
Cash	91,000	Accounts Payable	19,000
Accounts Receivable	44,000	Debt	24,000
Inventory	48,000	Other Liabilities	6,000
Property Plant & Equipment, Gross	234,000	Total Liabilities	49,000
Accumulated Depreciation	78,000	Paid-In Capital	69,000
Property Plant & Equipment, Net	156,000	Retained Earnings	247,000
Other Assets	26,000	Total Equity	316,000
Total Assets	365,000	Total Liabilities & Equity	365,000

Siam Traders Balance Sheet As of March 31, 2019 (amounts in thousands)
Cash	96,000	Accounts Payable	25,000
Accounts Receivable	45,000	Debt	23,300
Inventory	38,000	Other Liabilities	-6,720
Property Plant & Equipment, Gross	234,000	Total Liabilities	41,580
Accumulated Depreciation	78,700	Paid-In Capital	69,000
Property Plant & Equipment, Net	155,300	Retained Earnings	248,720
Other Assets	25,000	Total Equity	317,720
Total Assets	359,300	Total Liabilities & Equity	359,300

Revenue and expenses information from January 1 to March 31, 2019 were:
Sales Revenue of $9,600,000
COGS of 35% of Sales
Interest of $160,000
Other Expenses of $400,000
SG&A of $1,920,000
Tax Rate of 34%

What is the net income in the first quarter of 2019?

Please specify your answer in the same units as the balance sheets and round your answer to the nearest integer.

Answer 1

Net Income in the First quarter of 2019 S 2,020 $ $ $ 9,600 3,360 6,240 Siam Traders Income Statement For the Quarter Ended March 31, 2019 Sales Revenues Cost of Goods Sold Gross Profit Operating Expenses: Selling, General & Administrative Expenses $ 1,920 Depreciation Expense $ 700 Other Expenses $ 400 Total operating Expenses Earnings Before Interest & Taxes Interest Expenses Net profit before income tax Income Taxes Net Income $ $ $ $ $ 3,020 3,220 160 3,060 1,040 2,020 Cost of Goods Sold = $9,600*35% = $3,360 Income Taxes = $3,060*34% = $1,040