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A construction company's revenue is $1,500,000 for the year 2018. Direct costs of construction equals 1,000,000. The total general overhead of the company for the
A construction company's revenue is $1,500,000 for the year 2018. Direct costs of construction equals 1,000,000. The total general overhead of the company for the year is $36,000 which includes the following: Company purchased a water transportation equipment for $7000. The allowed deprecation for the equipment is $300. The company spent $3,500 per year on Meals and Entertainment during the year. The company spent $400 in office supplies for which the allowed depreciation is $25. The company spent $1500 on office utilities for which the allowed depreciation is $125. The company spent $500 on professional dues and memberships for which the allowed depreciation is $15 The company's tax rate for the year is 30%. The company also receives $12,000 in dividends and pays $1500 in interest. Determine the following for this company: a) Gross Profit b) Net Profit before taxes from construction business c) Net taxable income d) Net profit after taxes
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