Compute net income
One of the uses of an income statement is to determine how much profit (also called net income) the company is making. In this exercise, you will compute the net income of a company.
In this exercise, total_revenue, depreciation, and cost_of_goods_sold have already been loaded for you. You will compute the income before taxes using these items. Then, assuming a tax rate of 5%, you will compute the net income, i.e., the income after taxes.
This exercise is part of the course
Analyzing Financial Statements in Python
Exercise instructions
- Compute the income before taxes.
- Assuming a tax rate of 5%, compute the net income.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
depreciation = 260
total_revenue = 3640
cost_of_goods_sold = 460
# Compute income before taxes
income_before_taxes = ____
# Compute income after taxes
net_income = ____
print(net_income)