During 2018, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000. Parker's income from operations is

Question

Quizplus · Accepted Answer

Income from operations is calculated by subtracting the cost of goods sold and operating expenses from revenues earned.

Income from operations = Revenues - Cost of goods sold - Operating expenses 
Income from operations = $90,000 - $45,000 - $18,000 
Income from operations = $27,000

Therefore, the answer is B) $27,000.

During 2018, Parker Enterprises Generated Revenues of $90,000