Question

Using the following information, calculate Net Income: Sales Revenue $200,000, Other Operating Expenses $10,000, Depreciation Expense $20,000, and Cost of Goods Sold $50,000.

Select one:
a. $120,000
b. $130,000
c. $180,000
d. $140,000

Answer 1

Net Income is calculated by subtracting costs such as Cost of Goods Sold (COGS), Depreciation Expense, and Other Operating Expenses from Sales Revenue, resulting in $120,000.

Step-by-step explanation:

To calculate the Net Income, you need to consider sales revenue, cost of goods sold (COGS), depreciation expense, and other operating expenses. Here is the computation:

Sales Revenue: $200,000

Minus Cost of Goods Sold (COGS): $50,000

Minus Depreciation Expense: $20,000

Minus Other Operating Expenses: $10,000

When these costs are subtracted from the Sales Revenue, we get:

$200,000 - $50,000 (COGS) - $20,000 (Depreciation Expense) - $10,000 (Other Operating Expenses) = $120,000

Therefore, the Net Income is $120,000.