Question

16. Net income Please refer to Table 5 in the datafile. What is the net income of Ganado Germany? a) 761 400 EUR b) 1 080 000 EUR c) 799 470 EUR d) 725 143 EUR

Answer 1

Calculation of net income
Annual revenue(1000000*12.57)	12570000
less: direct cost (1000000*10)	-10000000
less :Cash expenses	-890000
less: Depreciation	-600000
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Operating profit....................-180000	1080000
less tax @29.5%	-318600
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Profit after tax	761400
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So net income or profit after tax is	761400 Euro