Westchase Supplies reported sales of $5,000,000, cost of goods sold of $3,200,000, operating expenses of $1,400,000 and income tax expense of $160,000 for the year What was the company’s net income for the year?
240,000
To calculate the company's net income, we need to subtract the cost of goods sold, operating expenses, and income tax expense from the sales.
Net Income = Sales - Cost of Goods Sold - Operating Expenses - Income Tax Expense
Given:
Sales = $5,000,000
Cost of Goods Sold = $3,200,000
Operating Expenses = $1,400,000
Income Tax Expense = $160,000
Substituting the values into the formula:
Net Income = $5,000,000 - $3,200,000 - $1,400,000 - $160,000
Now we can calculate the net income:
Net Income = $240,000
Therefore, Westchase Supplies reported a net income of $240,000 for the year.