Presented below are selected ledger accounts of Waterway Corporation as of December 31, 2020. Cash $58,000 Administrative expenses 116,000 Selling expenses 92,800 Net sales 626,400 Cost of goods sold 243,600 Cash dividends declared (2020) 23,200 Cash dividends paid (2020) 17,400 Discontinued operations (loss before income taxes) 46,400 Depreciation expense, not recorded in 2019 34,800 Retained earnings, December 31, 2019 104,400 Effective tax rate 20% Compute Net Income for 2020
In the following problem I am asked to compute Net Income. I am having a difficult time . Net Income is computed after Income Tax Expense. I am not sure of which amount the 20% tax rate is supposed to be taken from
Presented below are selected ledger accounts of Waterway Corporation as of December 31, 2020.
Cash $58,000
Administrative expenses 116,000
Selling expenses 92,800
Net sales 626,400
Cost of goods sold 243,600
Cash dividends declared (2020) 23,200
Cash dividends paid (2020) 17,400
Discontinued operations (loss before income taxes) 46,400
Depreciation expense, not recorded in 2019 34,800
Retained earnings, December 31, 2019 104,400
Effective tax rate 20%
Compute Net Income for 2020
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