The general ledger of the Fly-By-Night (FBN) Engineering Company contained the following account balances.
Administrative Expenses = $3,300
Subcontracted Services = $15,000
Development Expenses = $800
Interest Expense = $300
Sales Revenue = $40,000
Selling Expenses = $5,500
What is the net income before taxes and the net profit (or loss) after taxes? Assume a tax rate of 27%.
1) Net Income Before Taxes = $15,300
Net Profit After Taxes = $11,369
2) Net Income Before Taxes = $11,023
Net Profit After Taxes = $15,100
3) Net Income Before Taxes = $15,100
Net Loss After Taxes = ($11,023)
4) Net Income Before Taxes = $15,100
Net Profit After Taxes = $11,023