Question

The first and second year’s sales for a company were $328,000 and $565,000. The expenses for the first year were $117,000. The company had a net profit of $113,000 after two years.

What were the company's expenses for the second year?



A.
$230,000


B.
$354,000


C.
$663,000


D.
$776,000

Answer 1

As a disclaimer, I can't say I'm completely confident in this answer. Use at own risk.

Formulas:

Year 1: 328,000 (sales) - 117,000 (expense) = 211,000 (profit)

Year 2: 565,000 (sales) - x (expense) = y (profit)

Net Profit: 211,000 + y = 113,000

Math

211,000 (profit y1) + 565,000 (sales y2) = 776,000

776,000 - 113,000 (net profit) = -663,000 (expenses)

Confirm:

Net Profit: 211,000 + y = 113,000 (listed in formulas, just a reminder)

Plug in: 565,000 (y2 sales) - 663,000 (our solution) = -98,000

211,000 (y1 net) + -98,000 (our plug in) = 113,000 (2 year net profit given to us)