Calculate Net Income Given the Following Information: Tax Rate =

question 242

Multiple Choice

Calculate net income given the following information: tax rate = 30%; accounts receivable = $15,000; receivable turnover = 6 times; inventory = $4,000; inventory turnover = 6.25 times;
Operating expenses = $15,000; interest expense = $9,000.

• A) $29,700
• B) $28,700
• C) $27,700
• D) $26,700
• E) $25,700

Understand the nature, types, and treatment of accounts in accounting.

Identify the types of documents used as evidence for transactions.

Understand the normal balance of various types of accounts.

Analyze transactions to determine their impact on accounts.