Hoobstank, inc., has sales of $425,000, cost of $210,000, depreciation expense of $63,000, interest expense of $38,000, and a tax rate of 35 percent. what is the net income for this firm

Hoobstank, inc.

Income Statement:
Sales$425,000
Costs$-210,000
Depreciation$-63,000
EBIT(Operating Profit)$152,000

To find EBIT: sales - costs -depreciation = EBIT
Ex. 425,000 - 210,000 - 63,000 = $152,000 

Interest$-38,000
EBT (Expense before tax)$114,000

To find EBT: EBIT - Interest = EBT
Ex. 152,000 - 38,000 = $114,000

Tax rate 35%39,900
To find Tax: Sales - cost - depreciation - Interest = Tax .35(answer) = tax
Ex. 425,000 - 210,000 - 63,000 - 38,000 = $114,000 (if your answer is equal to EBT, its correct) so, 0.35(114,000) = 39,900

Net Income$74,100
To find Net Income: 114,000 - 39,900 = $74,100

1) i would probably get rid of my phone so i get extra money 2) it probably won’t because your would have to give up a lot but u need all the things u have3) your should probably not get the laptop and just save for college

The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."