Partial Income Statement Year Ending 2017
Sales revenue
$355,000
Cost of goods sold
$148,000
Fixed costs
$43,300
Selling, general, and administrative expenses
$28,200
Depreciation
$45,300
 
Use the data from the following financial statement in the popup​ window, LOADING.... Complete the partial income statement if the company paid interest expense of $ 17 comma 000 for 2017 and had an overall tax rate of 40 % for 2017.
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Part 1
Complete the income statement​ below:  ​(Round to the nearest​ dollar.)
Income Statement Year Ending 2017
Sales revenue
 
$355,000
Cost of goods sold
 
$148,000
Fixed costs
 
$43,300
Selling, general, and administrative expenses
 
$28,200
Depreciation
 
$45,300
EBIT
$
 
Interest expense
$
 
Taxable income
$
 
Taxes
$
 
Net income
$
 
 

To complete the income statement, let's go through the steps one by one:

1. **Calculate EBIT (Earnings Before Interest and Taxes):**
   \[
   \text{EBIT} = \text{Sales Revenue} - \text{Cost of Goods Sold} - \text{Fixed Costs} - \text{Selling, General, and Administrative Expenses} - \text{Depreciation}
   \]
   \[
   \text{EBIT} = 355,000 - 148,000 - 43,300 - 28,200 - 45,300 = 90,200
   \]

2. **Subtract Interest Expense to get Taxable Income:**
   \[
   \text{Taxable Income} = \text{EBIT} - \text{Interest Expense}
   \]
   \[
   \text{Taxable Income} = 90,200 - 17,000 = 73,200
   \]

3. **Calculate Taxes:**
   \[
   \text{Taxes} = \text{Taxable Income} \times \text{Tax Rate}
   \]
   \[
   \text{Taxes} = 73,200 \times 0.40 = 29,280
   \]

4. **Calculate Net Income:**
   \[
   \text{Net Income} = \text{Taxable Income} - \text{Taxes}
   \]
   \[
   \text{Net Income} = 73,200 - 29,280 = 43,920
   \]

### Completed Income Statement
**Income Statement Year Ending 2017**

- **Sales revenue:** $355,000
- **Cost of goods sold:** $148,000
- **Fixed costs:** $43,300
- **Selling, general, and administrative expenses:** $28,200
- **Depreciation:** $45,300

**EBIT:** $90,200  
**Interest expense:** $17,000  
**Taxable income:** $73,200  
**Taxes:** $29,280  
**Net income:** $43,920

Would you like any further details or have any questions? 

Here are five related questions that might expand on this information:
1. How would a change in the tax rate affect the net income?
2. What impact would a decrease in depreciation have on EBIT?
3. If sales revenue increased by 10%, how would that affect the income statement?
4. How does the interest expense influence the overall profitability of the company?
5. What role do fixed costs play in determining the company's break-even point?

**Tip:** When analyzing financial statements, always check both operating income (EBIT) and net income to understand how non-operational expenses (like interest) and taxes impact the company's profitability.

Partial Income Statement Year Ending 2017 Sales revenue $355,000 Cost of goods sold $148,000 Fixed costs $43,300 Selling, general, and administrative expenses $28,200 Depreciation $45,300. Use the data from the following financial statement in the popup window, LOADING.... Complete the partial income statement if the company paid interest expense of $17,000 for 2017 and had an overall tax rate of 40% for 2017.

This page provides a step-by-step guide to completing a partial income statement for the year ending 2017. The problem includes calculating EBIT, taxable income, taxes, and net income based on given financial data, interest expense, and a 40% tax rate. Suitable for college-level accounting students or professionals.

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