The company reports the following income statement results: Gross profit $500,000 Interest expense 15,000 Sales discounts 8,000 Net Sales Operating expense Effective tax rate $ 990,000 365,000 18% Calculate Sales. Calculate Income before Income tax (IBT). Calculate net income.

The company reports the following income statement results: Gross profit $500,000 Interest expense 15,000 Sales discounts 8,000 Net Sales Operating expense Effective tax rate $ 990,000 365,000 18% Calculate Sales. Calculate Income before Income tax (IBT). Calculate net income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The company reports the following income statement results:
Gross profit
$500,000
Interest expense
15,000
Sales discounts
8,000
Net Sales
Operating expense
Effective tax rate
$
$
$
990,000
365,000
18%
Calculate Sales.
Calculate Income before Income tax (IBT).
Calculate net income.
% Calculate the gross profit margin (one decimal place)
% Calculate the profit margin (two decimal places)

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