Nippon Technology Balance Sheet As of December 31 2017 amoun

Nippon Technology Balance Sheet As of December 31, 2017 (amounts in thousands) Cash Accounts Receivable Inventory 20,000 36,000 9,000 65,000 72,000 245,000 317,000 382,000 137,000 Accounts Payable 32,000 Debt 51,000 Other Liabilities Property Plant & Equipment, Gross Accumulated Depreciation 227,000 Total Liabilities 73,000 Paid-In Capital 154,000 Retained Earnings Property Plant & Equipment, Net Other Assets 8,000 Total Equity Total Assets 382,000 Total Liabilities & Equity Nippon Technology Balance Sheet As of March 31, 2018 amounts in thousands) Cash Accounts Receivable Inventory 28,000 32,000 8,670 68,670 72,000 246,530 318,530 387,200 40,000 Accounts Payable 26,000 Debt 56,000 Other Liabilities Property Plant & Equipment, Gross Accumulated Depreciation 227,000 Total Liabilities 73,800 Paid-In Capital 153,200 Retained Earnings Property Plant & Equipment, Net Other Assets Total Assets 12,000 Total Equity 387,200Total Liabilities &Equity; Revenue and expenses information from January 1 to March 31, 2018 were: Sales Revenue of $7,900,000 COGS of 40% of Sales Interest of $80,000 Other Expenses of $600,000 SG&A; of $790,000 Tax Rate of 34% What is the net income in the first quarter of 2018? Please specify your answer in the same units as the balance sheets and round your answer to the nearest integer

Solution

Income Statement Sales revenue 7900 Less: Cost of Good ssold 3160 (7900*40%) Gross margin 4740 Other expense S& A expense 790 Other expense 600 Interest expnse 80 Depreciation (73800-73000) 800 Pre-tax profits 2270 Less: tax @ 34% 771.8 Income after tax 1498.2