Posh Inc. has sales of $500,000 and costs of $300,000. Interest expense is $20,000 and depreciation is $50,000. The tax rate is 35%. What is the net income? a. $50,400 b. $84,500 c. $39,600 d. $20,400

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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What is the net income?

Posh Inc. has sales of $500,000 and costs of
$300,000. Interest expense is $20,000 and
depreciation is $50,000. The tax rate is 35%.
What is the net income?
a. $50,400
b. $84,500
c. $39,600
d. $20,400
Transcribed Image Text:Posh Inc. has sales of $500,000 and costs of $300,000. Interest expense is $20,000 and depreciation is $50,000. The tax rate is 35%. What is the net income? a. $50,400 b. $84,500 c. $39,600 d. $20,400
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