The Nellie Company has provided the following information:
Operating expenses were $115,000;
Gross profit was $629,000;
Cost of goods sold was $470,000
Interest expense was $17,000;
Extraordinary loss was $29,000;
Income tax expense was $199,000.
What was Nellie's income before taxes?
A)$514,000
B)$54,000
C)$497,000
D)$298,000

Question

The Nellie Company has provided the following information:
 Operating expenses were $115,000;
Gross profit was $629,000;
Cost of goods sold was $470,000
 Interest expense was $17,000;
 Extraordinary loss was $29,000;
Income tax expense was $199,000.
What was Nellie's income before taxes?
A)$514,000
B)$54,000
C)$497,000
D)$298,000

Quizplus · Accepted Answer

Income before taxes ($497,000) equals gross profit ($629,000) minus operating expenses ($115,000) and interest expense ($17,000).

The Nellie Company Has Provided the Following Information