Question
Mainline Homecare, a for-profit business, had revenues of $12.4 million last year. Expenses other than depreciation totaled 63 percent of revenues, and depreciation expense was
Mainline Homecare, a for-profit business, had revenues of $12.4 million last year. Expenses other than depreciation totaled 63 percent of revenues, and depreciation expense was $2.7 million. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Mainline must pay taxes at a rate of 35 percent of pretax (operating) income.
What was Mainline's net income?
Enter your answer in millions of dollars, rounded to one decimal place. Do not enter the "$" sign. For example, enter $12.34 million as 12.3. If the answer is negative, place a minus sign (-) before the answer.
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