In tax year 1, an electronics packaging firm (package other peoples products so no material costs) has a gross income of $35,000,000. $6,000,000 in salaries, $6,000,000 in hourly wages, $800,000 in depreciation expenses, a loan principle payment of $200,000, and a loan interest payment of $150,000. Determine the net income of the company in tax year 1 if the tax rate is 25%. Create an income statement that shows totals for Gross margin, S.G. & A, EBIT, Pre-tax Income, and Net Income in dollar figures.

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Answer Gross income 3500000000 Salaries 6000... View the full answer