value 1000 points Pharrell Inc has sales of 602000 costs of

value: .10.00 points Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, 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 References Worksheet Learning Objective: 02-02 Distinguish accounting income from cash flow. Difficulty: 1 Basic Section: 2.2 The Income Statement

Solution

Sales $602,000 Costs ($256,000) Depreciation expense ($62,500) Interest expense ($29,500) EBT $254,000 Taxes(40%) ($101,600) Net income $152,400