Shaq's Bakery has sales of $487,000 with costs of $263,000. Interest expense is $26,000 and depreciation...

Question

Question

Shaqs Bakery has sales of $487,000 with costs of $263,000. Interest expense is $26,000 and depreciation is $28,000. The tax

Answer 1

Answer #1

We know net income = Sales - cost price - expenses - taxes.

In this problem, Sales = $487000, cost = $263000, interest expenses = $ 26000, depreciation = $28000, tax rate = 21%.

Hence gross income = $487000 - $263000- $26000- $28000 = $170000

Tax = 21% of $170000 = $35700

Hence Net income of Shaq's Bakery = $170000 - $35700 = $134300 Ans

Answer 2

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