Question

Consider the following year-end information for a company: Cost of goods sold $ 420,000 Sales revenue 800,000 Non Operating expenses 10,000 Operating expenses 170,000 Income tax expense 80,000 What amount will the company report for operating income

Answer 1

The operating income for the company is calculated by subtracting both cost of goods sold and operating expenses from sales revenue, resulting in an operating income of $210,000.

Step-by-step explanation:

To calculate the operating income for the company, we start with the sales revenue and subtract the cost of goods sold (COGS) and operating expenses.

1. Start with Sales Revenue: $800,000.
2. Subtract Cost of Goods Sold (COGS): $420,000.
3. Subtract Operating Expenses: $170,000.
4. The result is the Operating Income: $800,000 - $420,000 - $170,000 = $210,000.

The company will report an operating income of $210,000.

Answer 2

$210,000.

Step-by-step explanation:

Given:

Cost of goods sold = $420,000

Sales revenue = $800,000

Operating expenses = $170,000

Question asked:

What amount will the company report for operating income ?

Solution:

As we know, Operating Income = Gross Profit- Operating Expenses

First of all we will find gross profit,

Gross Profit = Net Sales – Cost of goods sold

= $800,000 - $420,000

= $380,000

Now, Operating Income = Gross Profit- Operating Expenses

= $380,000 - $170,000

= $210,000

Therefore, consider the following year-end information for a company, its Operating Income is $210,000.