Using the Information Provided, Calculate Net Income for 2017

question 27

Multiple Choice

Using the information provided, calculate net income for 2017. Assume a tax rate of 35 percent. Year 2017
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

---

Definitions:

Doing Favors

Acts of kindness or assistance typically performed without expecting anything in return.

Building Reputations

involves the process of developing perceptions or opinions about an entity's character or quality, based on past actions and behaviors.

Equalize Power

Involves distributing authority and decision-making capabilities across an organization or community to ensure fair participation.

Balance Power

A principle aiming at distributing power among various entities or individuals to ensure that no single one has absolute control, often used to maintain stability and prevent abuse.