Net Income After Taxes

Operating expenses are the expenses a business incurs when selling goods or services such as rent, supplies, utilities, salaries, depreciation, and insurance ( Nickels, W. G.; McHugh, J.M.; & McHugh, S.M., 2010). Some of the other operating expenses specifically for Riordan Manufacturing are income taxes payable, accounts payable, and deferred income taxes-net. Net income after taxes or the bottom line is calculated by adding or subtracting the net amount of expenses and revenues to or from operating income ( Raiborn, C.A., 2010). Gross profit is calculated by subtracting sales or operating revenues from the cost of goods sold during the fiscal year (Raiborn, 2010).

Riordan Manufacturing’s operating expenses for the fiscal years of 2010 and 2011 for the twelve months ending September 30th are sales, marketing, and other; depreciation; quality assurance; research and development; general and administrative; and machining and systems. The total operating expenses for 2010 were $9,291,690.00 and 2011 increased to $9,996,603.00. An increase of $704,913.00. The profit before interest and taxes for 2010 was $3,272,314.00, and 2011 was $5,019,587.00. An increase of $1,747,273.00.

Riordan Manufacturing’s non-operating expenses include interest expense, taxes. The total non-operating expenses for 2010 were $121,533.00, and 2011 was $604,616.00. An increase of $483,083.00. Net profit after taxes, or the bottom line for 2010 was $2,430,872.00, and 2011 was $3,310,662.00. An increase of $879,790.00.