The Callie Company has provided the following information:
Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie's income before taxes?
A)$564,000
B)$188,000
C)$377,000
D)$232,000

Question

The Callie Company has provided the following information:
Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
 Income tax expense was $151,000.
What was Callie's income before taxes?
A)$564,000
B)$188,000
C)$377,000
D)$232,000

Quizplus · Accepted Answer

Income before taxes ($377,000) equals net sales ($940,000) minus cost of goods sold ($376,000), minus operating expenses ($231,000), minus interest expense ($32,000), plus gain on sale ($76,000).

The Callie Company Has Provided the Following Information