Suppose Torche Corporation has the following revenue and expenses for 2019:

Revenues of $9,100,000

Cost of Goods Sold of $2,730,000

Depreciation Expenses of $500,000

Income Taxes of $1,672,000

Interest Expenses of $180,000

Other Expenses of $600,000

Sales, General, & Administrative Expenses of $910,000

Required:

a. Create an income statement with amounts in thousands.

b. What is the value of Net Income?

Question

Business

Messiah Harris

6 December, 19:41

Suppose Torche Corporation has the following revenue and expenses for 2019:

Revenues of $9,100,000

Cost of Goods Sold of $2,730,000

Depreciation Expenses of $500,000

Income Taxes of $1,672,000

Interest Expenses of $180,000

Other Expenses of $600,000

Sales, General, & Administrative Expenses of $910,000

Required:

a. Create an income statement with amounts in thousands.

b. What is the value of Net Income?

+3

Answers (1)

Know the Answer?

Kramer · Answer 1

The value of net income is $3,008,000

Explanation:

Income statement:

Revenues = 9,100

COGS = (2,730)

Gross profit = 6,370

Other Expenses = (600)

Sales, General, & Administrative Expenses = (910)

Depreciation Expenses = (500)

Interest Expenses = (180)

EBT = 4,180

Tax = (1,672)

Depreciation = 500

Net income = 3,008

The value of net income is $3,008,000