Calculate net income based on the following information Sale

Calculate net income based on the following information. Sales are $250, cost of goods sold is $140, depreciation expense is $35, interest paid is $35, and the tax rate is 34%. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER, ENTER YOUR ANSWER TO TWO DECIMAL PLACES (e.g. 25.75). Your Answer: Answer

Solution

The correct answer is 26.40

Notes:

Sales	250.00
Less: Cost of Goods Sold	140.00
Gross Profit	110.00
Less: Depreciation	35.00
Less: Interest	35.00
Earnings Before Taxes	40.00
Less: taxes @ 34%	13.60
Net Income	26.40