Need net profit help:

[AccountingMom]

Given the following Balance Sheet extract, calculate the net profit on the Income Statement. (Assuming tax rate = 10% of operating profit) Balance Sheet extract: Common Stock 200, Retained earnings 25 , Revenues 170, Cost of Sales (103), Salaries (30), Interest (12) I keep getting 25 for my answer, but the correct answer is 21.....HOW?

 

[Harry_the_cat]

Can you show how you got 25 please? It will then be easier to see where you went wrong.

 

[AccountingMom]

170 - 103 - 30 - 12 = 25
Revenue- Cost of sales - Salaries - Interest

 

[Harry_the_cat]

Do you have to subtract tax? Do you know what the operating profit is?

 

[AccountingMom]

Thanks for all of your help. I gave all of the information that I was given. This is a study question for a test that I am taking for my job....which is in payroll!! So I don't deal in cost and sales. I am just going to give up on this question and hope that there aren't many like this on the test. LOL!!