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Billy exterminators inc has sales of $817,000, costs of
Billy exterminators inc has sales of $817,000, costs of$343,000, depreciation expense of $51,000, interest of $38,000, and
a tax rate of 21%. what is the net income?
Thenet incomefor Billy Exterminators Inc. is $304,150, if Billy exterminators inc has sales of $817,000, costs of $343,000, depreciation expense of $51,000, interest of $38,000, and a tax rate of 21%.To calculate the net income, we need to subtract all theexpensesfrom the sales and then subtract the tax expense.Sales = $817,000Costs = $343,000Depreciation Expense = $51,000Interest = $38,000Tax Rate = 21%First, we calculate theoperating incomeby subtracting the costs, depreciation expense, and interest from the sales:Operating Income = Sales - Costs - Depreciation Expense - InterestOperating Income = $817,000 - $343,000 - $51,000 - $38,000Operating Income = $385,000Next, we calculate the tax expense by applying the tax rate to the operating income:Tax Expense = Tax Rate * Operating IncomeTax Expense = 0.21 * $385,000Tax Expense = $80,850Finally, we calculate the net income by subtracting the tax expense from the operating income:Net Income = Operating Income - Tax ExpenseNet Income = $385,000 - $80,850Net Income = $304,150Therefore, the net income is $304,150.Net income represents the company's profit after deducting all expenses, including taxes. In this case, after accounting for costs, depreciation, interest, and taxes, Billy Exterminators Inc. generated a net income of $304,150. This indicates the company'sprofitabilityand the amount of earnings it retains after fulfilling its financial obligations. It serves as a key metric to assess the financial performance and success of the company in generating profits from its operations.To know more aboutnet incomerefer herebrainly.com/question/32614743#SPJ11...