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SashulF
2 months ago
5

Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a

tax rate of 21 percent. What is the net income for this firm? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Business
1 answer:
arsen [3.4K]2 months ago
5 0

Answer:

$154,050

Explanation:

The following shows how net income for the business is calculated:

Total Sales           $634,000

Subtract: costs      -$328,000

Subtract: depreciation -$73,000

EBIT                   -$233,000

Subtract: interest      -$38,000

EBT                      195,000

Subtract: tax(195,000 × 21%) -$40,950

Net income    $154,050

The calculation involves deducting all costs, interest, and taxes from the total sales revenue to arrive at the net income.

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