Using the Information Provided, Calculate Net Income for 2017

Multiple Choice

Using the information provided, calculate net income for 2017. Assume a tax rate of 35 percent. Year 2017
Inventory $5,000
Revenues 200,000
Depreciation expense 5,000
Cost of goods sold 100,000
Interest expense 10,000
Operating expenses 30,000

A) $35,750
B) $44,000
C) $50,000
D) $19,250