Use the balance sheets and information provided about revenue and expenses to answer the question. Valley Technology
Balance Sheet
As of December 31, 2017 (amounts in thousands)
Cash 97,000
Accounts Payable 15,000
Accounts Receivable 45,000
Debt 29,000
Inventory 38,000
Other Liabilities 8,000
Property Plant & Equipment, Gross 239,000
Total Liabilities 52,000
Accumulated Depreciation 75,000
Paid-In Capital 73,000
Property Plant & Equipment, Net 164,000
Retained Earnings 236,000
Other Assets 17,000
Total Equity 309,000
Total Assets 361,000
Total Liabilities & Equity 361,000
Valley Technology
Balance Sheet
As of March 31, 2018 (amounts in thousands)
Cash 101,000
Accounts Payable 7,000
Accounts Receivable 46,000
Debt 19,000
Inventory 33,000
Other Liabilities 24,485
Property Plant & Equipment, Gross 239,000
Total Liabilities 50,485
Accumulated Depreciation 76,000
Paid-In Capital 73,000 Property Plant & Equipment,
Net 163,000
Retained Earnings 237,515
Other Assets 18,000
Total Equity 310,515
Total Assets 361,000
Total Liabilities & Equity 361,000
Revenue and expenses information from January 1 to March 31, 2018 were:
Sales Revenue of $8,800,000
COGS of 35% of
Sales Interest of $80,000
Other Expenses of $200,000
SG&A of $1,760,000
Tax Rate of 36%
What is the net income in the first quarter of 2018?