Quarles Industries had the following operating results for 2015: sales = $29,500
ID: 2776488 • Letter: Q
Question
Quarles Industries had the following operating results for 2015: sales = $29,500; cost of goods sold = $19,760; depreciation expense = $5,260; interest expense = $2,640; dividends paid = $1,450. At the beginning of the year, net fixed assets were $17,080, current assets were $5,860, and current liabilities were $3,325. At the end of the year, net fixed assets were $20,660, current assets were $7,300, and current liabilities were $3,980. The tax rate for 2015 was 35 percent. a. What is net income for 2015? (Do not round intermediate calculations.) Net income $
Explanation / Answer
Sales 29500 Cogs -19760 Gross profit= Sales - COGS 9740 -depreciation expense -5260 EBIT= 4480 -Interest expense -2640 PBT 1840 -Taxes= PBT*tax rate -644 Net Income= 1196