Griffin's Goat Farm, Incorporated, has sales of $694,000, costs of $355,000, depreciation expense of $55,000, interest expense of $28,000, and a tax rate of 21 percent. What is the net income for this firm? Multiple Choice O $110,260 $230,240 $285,240 $202,240

Griffin's Goat Farm, Incorporated, has sales of $694,000, costs of $355,000, depreciation expense of $55,000, interest expense of $28,000, and a tax rate of 21 percent. What is the net income for this firm? Multiple Choice O $110,260 $230,240 $285,240 $202,240

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Griffin's Goat Farm, Incorporated, has sales of $694,000, costs of $355,000,
depreciation expense of $55,000, interest expense of $28,000, and a tax rate of 21
percent. What is the net income for this firm?
Multiple Choice
O $110,260
$230,240
$285,240
$202,240

Multiple Choice
O
O
O
O
$110,260
$230,240
$285,240
$202,240
$257,240

Expert Solution

Step 1 Introduction

Income statement :— It is one of the type of financial statement that shows profitability, total revenue and total expenses.

Net income :— It is the difference between total revenue and total expenses.

Taxes :— It is calculated by multiplying tax rate with income before tax.

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