Pharrell Inc has sales of 587000 costs of 271000 depreciatio

Pharrell, Inc., has sales of $587,000, costs of $271,000, depreciation expense of $70,000, interest expense of $37,000, and a tax rate of 30 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

Solution

Ans. Net Income = 146300 *Calculation: Particulars Amount Sales 587000 Costs -271000 Gross margin 316000 Depreciation expenses -70000 Net income before interest and taxes 246000 Interest expense -37000 Net income before taxes 209000 Income taxes (209000*30%) 62700 Net income 146300