Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $8,750,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firm's net income?
A) $255,223
B) $4,731,000
C) $2,616,000
D) $7,775,000

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting cost of goods sold, operating expenses, interest expense, and income tax from sales. So, $50,250,000 - $35,025,000 - $8,750,000 - $750,000 - $1,744,000 = $4,731,000.

Your Firm Has the Following Income Statement Items: Sales of $50,250,000;