Given the following data from Swamp & Sand Industries, calculate the NI. The tax rate is 30%.
|Cost of Sales 400|
|Interest Expense 7|
Note SGA does not include depreciation.
Income Statements can be done via a single-step income statement, that expenses will be deducted from the revenues. A multi-step income statement is done via several steps, from computing the gross margin and detailed breakdown of the expenses up to computation of income taxes to get the net income for the period.
Answer and Explanation:
We will compute for the net income using the single-step income statement. Net Income is the highlighted amount at the bottom.
|Cost of Sales||(400)|
|Taxes (Operating Margin * 30%)||(99)|
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2