A company reported the following: $\begin{array}{lr}
\text { Cost of Goods Sold } & \$ 200,000 \
\text { General, Selling, and Administrative Expenses } & 52,800 \
\text { Income Tax Expense } & 3,600 \
\text { Inventory } & 12,000 \
\text { Net Income } & 22,560 \
\text { Sales Revenue } & 284,000 \
\text { Sales Discounts } & 2,720\
\text { Sales Returns \& Allowances }&2,320
\end{array}$ What is the amount of income before income taxes?
A)$7,600
B)$26,160
C)$10,400
D)$14,000

Question

Quizplus · Accepted Answer

To calculate income before income taxes, we start with Sales Revenue and subtract Sales Discounts and Sales Returns & Allowances to get Net Sales. Then, subtract Cost of Goods Sold and General, Selling, and Administrative Expenses from Net Sales. The calculation is as follows: $284,000 - 2,720 - 2,320 = 278,960$ (Net Sales). Then, $278,960 - 200,000 - 52,800 = 26,160$. This is the income before income taxes.

A Company Reported the Following What Is the Amount of Income Before Income Taxes? A)$7,600

A Company Reported the Following What Is the Amount of Income Before Income Taxes?
A)$7,600