Using the Information Provided,calculate Net Income for 2013

question 72

Multiple Choice

Using the information provided,calculate net income for 2013.Assume a tax rate of 35 percent.
Year 2013
Inventory $5,000
Revenues 200,000
Depreciation expense 5,000
Cost of goods sold 100,000
Interest expense 10,000
Operating expenses 30,000

• A)$35,750
• B)$44,000
• C)$50,000
• D)$19,250

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Definitions:

Liquidation Balances

The final amounts owed to creditors and investors after a company has been liquidated and all assets have been sold off.

Liquidation Process

The procedure of closing a business by selling its assets to pay off its liabilities and distributing any remaining assets to the owners or shareholders.

Gain or Loss

Represents the difference between the sale price of an asset and its original purchase price, indicating a financial profit or deficit.

Income Ratios

Financial metrics that compare different aspects of a company's income, such as net income to sales or net income to total assets, to assess financial health.