Selling, general, and administrative expenses were $80,000; net sales were $390,000; interest expense was $16,000; research and development expenses were $34,000; net cash provided by operating activities was $42,000; income tax expense was $10,000; cost of goods sold was $220,000. Operating income for the period was:

Question

Quizplus · Accepted Answer

Operating income is calculated as net sales minus the sum of cost of goods sold, selling, general, and administrative expenses, and research and development expenses. Thus, $390,000 - ($220,000 + $80,000 + $34,000) = $56,000.

Selling, General, and Administrative Expenses Were $80,000; Net Sales Were