Question

What is the amount of Income from Operations that a company should report on its current year multiple- step income statement based on the following data? $ 600,000 $ 250,000 50,000 25,000 Net sales Selling, general & Cost of goods sold Income taxes expense 150,000 administrative expenses Interest expense A. $125,000 B. $175,000 C. $200,000 D. $350,00

Answer 1

Answer:

$200,000

Explanation:

Data provided in the question:

Net sales  = $ 600,000

Selling, general & Cost of goods sold = $ 250,000

Income taxes expense = 50,000

Interest expense = 25,000

Administrative expenses Interest expense = 150,000

Now,

Income from Operations

= Net Sales - Cost of Goods Sold - Selling & Administrative Expenses

= $600,000 - $250,000 - $150,000

= $200,000