Company ABC has sales= € 56225, costs= € 31239, other expenses= € 4500, depreciation expense= €...

Question

Question

Company ABC has sales= € 56225, costs= € 31239, other expenses= € 4500, depreciation expense= € 6200, interest expense= € 5000 and the tax rate 35%.

What is the net income?

Answer 1

Answer #1

The following table shows the calculations

Calculations	Particulars	Amount
A	Sales	56,225
B	Costs	31,239
C	Other expenses	4,500
D	Depreciation	6,200
E = A-B-C-D	Earnings before Interest and Taxes	14,286
F	Interest Expense	5,000
G = E - F	Earnings Before Taxes	9,286
H = G x 35%	Taxes	3,250
I = G - H	Net Income	6,036

Answer 2

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