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

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Definitions:

Equilibrium Quantity

The level of output at which demand and supply in the market balance perfectly, setting the stage for stable prices unless external factors intervene.

Demand Schedule

A table or graph showing the quantity of a good that consumers are willing to purchase at various prices.

Supply Schedule

A table or graph that shows the quantity of goods that producers are willing and able to supply at various prices over a specified period.

Equilibrium Price

The market price at which the quantity of a good supplied is equal to the quantity demanded.