Delta Ray Brands Corp just completed their latest fiscal yea

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,149,500. Depreciation and amortization was $851,600, interest expense for the year was $823,100, and selling general and administrative expenses totaled $1,597,100 for the year, and cost of goods sold was $10,629,200 for the year. Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax?

Solution

Answer:

EBT = Sales - Cost of goods sold - Expense - Depreciation and amortization - Interest expense

EBT = $16,149,500 - $10,629,200 - $1,597,100 - $851,600 - $823,100

EBT = $2,248,500

Taxes = $2,248,500 * 0.34

Taxes = $764,490

Net income after tax = EBT - Taxes

Net income after tax = $2,248,500 - $764,490

Net income after tax = $1,484,010