Calculate Net Income Based on the Following Information

question 21

Multiple Choice

Calculate net income based on the following information. Sales are $250,cost of goods sold is $160,depreciation expense is $35,interest paid is $20,and the tax rate is 34%.

• A) $11.90
• B) $23.10
• C) $35.00
• D) $36.30
• E) $46.20

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Definitions:

Debit Memorandum

A document issued by a buyer to a seller indicating the debiting of the seller's account due to goods returned or a decrease in services provided.

Credit Memorandum

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an earlier invoice.

Deposit In Transit

Funds that have been sent to a bank but have not yet been recorded in the bank's records or the depositor's account balance.

Outstanding Checks

Checks that have been written and recorded in the issuing company's books but not yet cashed by the recipient.