Delta Ray Brands Corp just completed their last fiscal year. The firm had sales

ID: 2729422 • Letter: D

Question

Delta Ray Brands Corp just completed their last fiscal year. The firm had sales of $17,573,000. Depreciation and amortization was $880,800, interest expense for the year $839,500, and selling general and administrative expenses totaled $1,514,500 for the year, and cost of goods sold was $10,944,500 for the year. Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax? Delta Ray Brands Corp just completed their last fiscal year. The firm had sales of $17,573,000. Depreciation and amortization was $880,800, interest expense for the year $839,500, and selling general and administrative expenses totaled $1,514,500 for the year, and cost of goods sold was $10,944,500 for the year. Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax?

Explanation / Answer

Calculation of net income after tax:

Particulars

Amount ($)

Sales

17573000

Less: Cost of Goods Sold

10944500

Gross Profit

6628500

Less: Depreciation and amortization

880800

Less: Interest Expense

839500

Less: Selling, General & Administrative Expenses

1514500

Net Income Before Tax

3393700

Less: Income Tax (34%)

1153858

Net Income after Tax

2239842