Question

0.00 points Pharrell, Inc., has sales of $588,000, costs of $270,000, depreciation expense of $69,500, interest expense of $36,500, and a tax rate of 40 percent. What is the net income for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net income

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Answer #1

Income statement

sales

588000

less cost

270000

gross profit

318000

less depreciation

69500

operating profit

248500

less interest expense

36500

profit before tax

212000

less taxes -40%

212000*40%

84800

net income

127200

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