Squat XFit Inc. reported the following activities during 2020. Capital expenditures 67.3
Cost of goods sold 34.5
Cash purchases of inventory 24.6
Dividends 5.0
Income tax rate 25%
Interest expense 45.6
Net revenues 158.5
Other operating expenses 16.5
Purchases of intangible assets 45.0
Gain on sale of land 5.0
Selling, general, & administrative 14.9
Write-down of PP&E 7.0
Interest income 4.0
Depreciation expense 14.0
Amortization expense 9.0
Write down of inventory 5.0
Stock based compensation
expense 12.0
Paydown of short term debt 4.0
Calculate net income for the year ending 12/31/2020.
A. $3.00 million.
B. $3.75 million.
C. $6.75 million.
D. $15.75 million.