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7 September, 23:37

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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  1. 8 September, 01:07
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    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
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