Emery Mining Inc. recently reported $150,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income

Question

Fletcher Griffith

Business

19 July, 20:12

Emery Mining Inc. recently reported $150,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income

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Corinne Dunlap · Answer 1

Net Income for the Period is $41,018.

Explanation:

Emery Mining Inc.

Statement of Profit or Loss

Revenue $150,000

Operating Costs (75,500)

Depreciation (10,200)

Earnings Before Interest and Tax $64,300

Interest Expense (16,500*7.25%) (1,196)

Earnings Before Tax $63,104

Tax (35%) (22,086)

Earnings After Tax OR Net Income $41,018