Colfax Corporation's financial statements for the current year include the following: On the basis of this information,net income for the current year is:

Question

Colfax Corporation's financial statements for the current year include the following:  On the basis of this information,net income for the current year is:

Quizplus · Accepted Answer

Net income can be calculated as follows:

Net income = Revenue - Cost of goods sold - Operating expenses - Interest expense + Other income

From the given financial statements, we can determine that:

Revenue = $36,600,000
Cost of goods sold = $21,544,000
Operating expenses = $10,514,400
Interest expense = $1,120,000
Other income = $743,200

Plugging these values into the above equation, we get:

Net income = $36,600,000 - $21,544,000 - $10,514,400 - $1,120,000 + $743,200
Net income = $4,164,800 - $11,634,400 + $743,200
Net income = $1,251,200

Therefore, the correct answer is A) $1,251,200.

Colfax Corporation's Financial Statements for the Current Year Include the Following