Question
Hi - Can you please advise of what the net profit is based on the information below: Zach Industries Income Statement for the Year Ended
Hi - Can you please advise of what the net profit is based on the information below:
Zach Industries Income Statement for the Year Ended December 31, 2015
Revenue $160,000
Less: Cost of goods sold 106,000
Gross profits $ 54,000
Less: Operating expenses
Selling expense $ 16,000
General and administrative expenses 10,000
Lease expense 1,000
Depreciation expense 10,000
Total operating expense $ 37,000
Operating profits $ 17,000
Less: Interest expense 6,100
Net profits before taxes $ 10,900
Less: Taxes 4,360
Net profits after taxes $ 6,540
Zach Industries Balance Sheet December 31, 2015
Assets Cash $ 500
Marketable securities 1,000
Accounts receivable 25,000
Inventories 45,500
Total current assets $ 72,000
Land $ 26,000
Buildings and equipment 90,000
Less: Accumulated depreciation 38,000
Net fixed assets $ 78,000
Total assets $150,000
Liabilities and Stockholders Equity Accounts payable $ 22,000
Notes payable 47,000
Total current liabilities $ 69,000
Long-term debt 22,950
Common stock 31,500
Retained earnings 26,550
Total liabilities and stockholders equity $ 150,000
The firms 3,000 outstanding shares of common stock closed 2015 at a price of $25 per share.
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