calculate the net income after corporate income tax is paid for quarter 2.\nincome statement\n| |q1…

calculate the net income after corporate income tax is paid for quarter 2.\nincome statement\n| |q1 (x1000)|q2 (x1000)|\n|--|--|--|\n|net sales|150|90|\n|cogs|(42)|(30)|\n|gross profit|108|60|\n|overhead|(50)|(40)|\n|pre - tax income|58|20|\ncorporate income tax = $4,200\nnet income = $?
Answer
Explanation:
Step1: Identify pre - tax income for Q2
Pre - tax income for Q2 is $20\times1000 = 20000$ (since the values in the table are in thousands).
Step2: Subtract corporate income tax
Net income = Pre - tax income - Corporate income tax. Net income=$20000 - 4200$. $20000-4200 = 15800$.
Answer:
$15800$