The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the company's net income for the year ending December 31, 2014?
A) ¥399,000
B) ¥126,000
C) ¥84,000
D) ¥36,000

Question

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014:  What is the company's net income for the year ending December 31, 2014?
A) ¥399,000 
B) ¥126,000 
C) ¥84,000 
D) ¥36,000

Quizplus · Accepted Answer

Net income is calculated as revenues minus expenses. In this case, the revenues are the sales of ¥2,100,000 and the other income of ¥21,000, for a total of ¥2,121,000. The expenses are the cost of goods sold of ¥1,447,000, the operating expenses of ¥413,000, and the interest expense of ¥135,000, for a total of ¥1,995,000. Subtracting expenses from revenues gives a net income of ¥126,000 (Option B).

The Following Items (In Thousands) Are Taken from the Financial