Calculate Net Income SALES 734000 COSTS 315000 DEPRECIATION

Calculate Net Income:

SALES $734000

COSTS $315000

DEPRECIATION EXPENSE 48000

INTEREST EXPENSE 35000

TAX RATE 35%

CASH DIVIDENDS $85000

SHARES OUTSTANDING 110000

Solution

net income = (734,000 - 315,000 - 48,000 - 35,000)* ( 1 - 0.35)

net income = 218,400