Exercise

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.

Instructions

100 XP

Compute the income before taxes.
Assuming a tax rate of 5%, compute the net income.