Question

Question 20 Not yet answered Marked out of 1.00 Flag question The accounting records of Slattery Corporation, a small manufacturing company, show the following balances for the fiscal year ending December 31, 2019: Sales revenue $3,425,000 Selling expense $782,000 Research and development 96,400 Gain on sale of bonds 20,300 Interest income 18,400 Cost of goods sold 1,611,000 Restructuring costs 112,000 General and administrative expense 585,700 Interest expense 32,000 The restructuring costs were incurred as a result of one-time changes in raw materials management. Slattery prepares multiple-step income statements. Use 25% as the tax rate. Slattery Corporation's Net income for 2019 equals Select one: a. $267,450 b. $334,725 0 c. $262,425 O d. $183,450 e. $244,600

Answer 1

Sales revenue		3425000
Less: Cost of goods sold		1611000
Gross profit		1814000
Operating expenses:
General and administrative expenses	585700
Restructuring costs	112000
Selling expense	782000
Research and development	96400
		1576100
Operating income		237900
Other income (expense):
Gain on sale of bonds	20300
Interest income (expense), net	(13600)		=18400-32000
Other income (expense), net		6700
Income before income taxes		244600
Income tax expense		61150	=244600*25%
Net income		183450
Option D $183,450 is correct