1. Boomer, Inc. had sales of $5 million with interest expense of $500,000 and depreciation of $850,000. Their cost of goods sold run 35% of sales and your tax rate is 40%. If they also have other operating costs of $1,500,000, what was their net income?
A. $240,000
B. $400,000
C. $97,500
D. $1,140,000
2. Pancake Village had sales of $1.5 million with depreciation of $350,000 and other operating costs that ran 35% of sales. They paid $180,000 in dividends with a tax rate of 40% and interest expense of $280,000. What was their Net Income?
A. $207,000 B. $99,000 C. $522,000 D. $417,000