Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Calculate the net income after corporate income tax is paid for Quarter 1.

\begin{tabular}{|l|r|r|}
\hline \multicolumn{3}{|c|}{ Income Statement } \\
\hline Net Sales & Q1 (x1000) & Q2 (x1000) \\
\hline COGS & [tex]$(70)$[/tex] & 235 \\
\hline Gross Profit & 130 & [tex]$(150)$[/tex] \\
\hline Overhead & [tex]$(40)$[/tex] & [tex]$(150)$[/tex] \\
\hline Pre-tax Income & 90 & 100 \\
\hline
\end{tabular}

Corporate Income Tax [tex]$=\$[/tex]18,900$

Net Income [tex]$=\$[/tex][?]$

Sagot :

GinnyAnswer
To calculate the net income after corporate income tax is paid for Quarter 1, we need to follow these steps:

1. Identify the pre-tax income for Quarter 1.
2. Identify the corporate income tax amount.
3. Subtract the corporate income tax from the pre-tax income to determine the net income.

From the given data:
- The pre-tax income for Quarter 1 is [tex]$90,000$[/tex] dollars.
- The corporate income tax is [tex]$18,900$[/tex] dollars.

Now, we can calculate the net income as follows:

[tex]\[ \text{Net Income Q1} = \text{Pre-tax Income Q1} - \text{Corporate Income Tax} \][/tex]

Substituting the values:

[tex]\[ \text{Net Income Q1} = 90,000 - 18,900 \][/tex]

[tex]\[ \text{Net Income Q1} = 71,100 \][/tex]

Therefore, the net income after corporate income tax is paid for Quarter 1 is $71,100 dollars.
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.