The Willie Company has provided the following information:
Operating expenses were $345,000;
Income from operations was $215,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Discontinued operations loss was $87,000;
Income tax expense was $58,000.
What was Willie's income before taxes?
A)$144,000
B)$57,000
C)$215,000
D)$539,000

Question

The Willie Company has provided the following information:
 Operating expenses were $345,000;
 Income from operations was $215,000;
 Net sales were $1,100,000;
Interest expense was $71,000;
 Discontinued operations loss was $87,000;
 Income tax expense was $58,000.
What was Willie's income before taxes?
A)$144,000
B)$57,000
C)$215,000
D)$539,000

Quizplus · Accepted Answer

Income before taxes ($144,000) equals income from operations ($215,000) minus interest expense ($71,000).

The Willie Company Has Provided the Following Information