Homework SourseGiven the following data calculate the net income Sales 200
Given the following data calculate the net income:
Sales = $200,000
Transportation Costs = $7,000
Warehousing Costs = $1,600
Inventory Carrying Costs = 28%
Other Operating Costs = $65,000
Interest = $10,000
Taxes = 40% (Earning Before Interest and Taxes - Interest)
Solution
According to me the answer is $ 69,571.20.
| Sales | $ 200,000 |
| Less:- | |
| Transportation Cost | $ 7,000 |
| Warehouse Cost | $ 1,600 |
| Inventory Carrying Cost(28% @ Warehouse Cost) | $ 448 |
| Other Operating Costs | $ 65,000 |
| Total Costs | $ 74,048 |
| Earnings Before Interest & Taxes | $ 125,952 |
| Less :- Interest | $ 10,000 |
| Taxable Income | $ 115,952 |
| Tax Expenses (Taxable Income@ 40%) | $ 46,380.80 |
| Net Income | $ 69,571.20 |
