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Presented below are selected ledger accounts of Tran Corporation as of December 31, 2017. Cash $125,000 Administrative expenses 250,000 Selling expenses 200,000 Net sales 1,350,000
Presented below are selected ledger accounts of Tran Corporation as of December 31, 2017.
Cash | $125,000 | |
Administrative expenses | 250,000 | |
Selling expenses | 200,000 | |
Net sales | 1,350,000 | |
Cost of goods sold | 525,000 | |
Cash dividends declared (2017) | 50,000 | |
Cash dividends paid (2017) | 37,500 | |
Discontinued operations (loss before income taxes) | 100,000 | |
Depreciation expense, not recorded in 2016 | 75,000 | |
Retained earnings, December 31, 2016 | 225,000 | |
Effective tax rate = 30% |
(a)
Compute net income for 2017.
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