Prepare the responses identified. Attach solutions in the same order of the prob
ID: 2480880 • Letter: P
Question
Prepare the responses identified. Attach solutions in the same order of the problems with each problem number and solution clearly identified. 17-1 Partial listing of account balances from the ledger of MKBK Manufacturing is provided for the end of year 2002. The amount shown is in $1000's. Develop an income statement. What is the net income before taxes and the net profit (or loss) after taxes? MKBK is at 34% tax bracket. Payroll and administrative expenses $16,000 Subcontract expenses 20,000 Development expenses 18,000 Interest payment 400 Sales revenue 65,000 Selling expenses 9,000Explanation / Answer
Net income spoecifies the amount earned by company from its operations it can be prepared as Amount ( in 1000's) Sales Revenue 65000 Less: Operating expenses Payroll and administrative expense 16000 subcontract expense 20000 development expense 18000 selling expense 9000 63000 Less: Interest expense 400 Net Income before taxes 1600 Less: Taxes 544 = 1600 x 34 % Net profit after taxes 1056