Question: During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The firm's cost of goods sold and selling expenses were $527,000 and $217,000, respectively. The firm also had notes payable of $820,000. These notes carried an interest rate of 5 percent. Depreciation was $132,000. The firm's tax rate was 40 percent. What was the firm's net income?
Question: During the year, the Senbet Discount Tire Company had gross sales of $1.08 million. The firm's cost of goods sold and selling expenses were $527,000 and $217,000, respectively. The firm also had notes payable of $820,000. These notes carried an interest rate of 5 percent. Depreciation was $132,000. The firm's tax rate was 40 percent. What was the firm's net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
During the year, the Senbet Discount
Tire Company had gross sales of
$1.08 million. The firm's cost of
goods sold and selling expenses were
$527,000 and $217,000, respectively.
The firm also had notes payable of
$820,000. These notes carried an
interest rate of 5 percent.
Depreciation was $132,000. The
firm's tax rate was 40 percent.
What was the firm's net income?
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