Calculating Critter Crafts Net Income

What was Critter Crafts net income?

Critter Crafts' net income for the fiscal year is 123.75 thousand. Critter Crafts' net income can be calculated by subtracting the total expenses from the total sales revenue.

Calculating Critter Crafts Net Income Step by Step

1. Start with the sales revenue: Critter Crafts reported sales of $430,000. 2. Deduct the cost of goods sold (COGS): Critter Crafts reported COGS of $167,000. Subtract this amount from the sales revenue: $430,000 - $167,000 = $263,000. 3. Deduct selling, general, and administrative expenses (SG&A): Critter Crafts reported SG&A expenses of $31,000. Subtract this amount from the result obtained in the previous step: $263,000 - $31,000 = $232,000. 4. Deduct depreciation expenses: Critter Crafts reported depreciation expenses of $49,000. Subtract this amount from the previous result: $232,000 - $49,000 = $183,000. 5. Deduct interest expenses: Critter Crafts reported interest expenses of $18,000. Subtract this amount from the previous result: $183,000 - $18,000 = $165,000. 6. Calculate the income tax: Critter Crafts' tax rate is given as 25%. Multiply the net income before tax ($165,000) by the tax rate: $165,000 * 0.25 = $41,250. 7. Subtract the income tax from the net income before tax: $165,000 - $41,250 = $123,750. Therefore, Critter Crafts' net income for the fiscal year is $123,750.
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