Question

Selling, general, and administrative expenses were $59,000; net sales were $268,100; interest expense was $6,300; research and development expenses were $27,800; net cash provided by operating activities was $69,900; income tax expense was $6,700; cost of goods sold was $145,500. Required: a. Calculate operating income for the period.

Answer 1

$35,800

Step-by-step explanation:

Gross Profit = Net sales - Cost of goods sold

= $268,100 - $145,500

= $122,600

Total Operating Expense:

= S, G & A Expenses + R&D expense

= $59,000 + $27,800

= $86,800

Operating Income = Gross Profit - Total Operating Expense

= $122,600 - $86,800

= $35,800