United brands corp. just completed their latest fiscal year. the firm had sales of $16,650,000. depreciation and amortization was $832,500, interest expense for the year was $825,000, and selling general and administrative expenses totaled $1,665,000 for the year, and cost of goods sold was $9,990,000 for the year. assuming a federal income tax rate of 34%, what was the united brands net income after-tax?

Question

Lorenzo Kent

Business

24 August, 20:56

United brands corp. just completed their latest fiscal year. the firm had sales of $16,650,000. depreciation and amortization was $832,500, interest expense for the year was $825,000, and selling general and administrative expenses totaled $1,665,000 for the year, and cost of goods sold was $9,990,000 for the year. assuming a federal income tax rate of 34%, what was the united brands net income after-tax?

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Aleah Dominguez · Answer 1

Calculation of Net Income after tax: Net Income after tax can be calculated using the following statement:

Sales $16,650,000

Less: Cost of goods sold $9,990,000

Less: Depreciation and amortization $832,500

Less: Interest expense $825,000

Less: Selling general and administrative expenses $1,665,000

Income before tax = $3,337,500

Less: Income Tax ($3,337,500 * 34%) = $1,134,750

Net income after-tax = $2,202,750

Hence Net Income after tax is $2,202,750