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Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of...

Question:

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,306,200. Depreciation and amortization were $898,000, interest expense for the year were $804,700, and selling general and administrative expenses totaled $1,513,700 for the year, and cost of goods sold was $10,585,600 for the year. Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax?

Net Income:

The total profit available after paying all expenses and obligation of the company is termed as net income.

Answer and Explanation:

Sales=$16,306,200

Less: COGS=$10,585,600

Gross profit= $5,720,600

Less:selling general and administrative expenses=$1,513,700

EBITDA=$4,206,900

Less:Depreciation and amortization =$898,000

EBIT=$3,308,900

Less: Interest expense= $804,700

PBT=$2,504,200

Less:Tax@34%=$851,428

Net Income=$1,652,772


Learn more about this topic:

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What Is Net Income? - Definition & Formula

from OSAT Business Education (CEOE) (040): Practice & Study Guide

Chapter 69 / Lesson 5
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