Study Problems

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The Income Statement

  1. 3–1. (Working with the income statement) (Related to Checkpoint 3.1 on page 46) GMT Transport Company ended the year with record sales of $18 million. The firm’s cost of goods sold totaled $10.8 million while its operating expenses (including depreciation) totaled $4 million. GMT paid $1.5 million in interest expense and had an income tax liability of $595,000. What is the firm’s net income for the year?

  2. 3–2.

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