Kwok Enterprises has the following income statement. How much after-tax operating income does the firm have?
A) $325
B) $342
C) $360
D) $378
E) $397

Question

Quizplus · Accepted Answer

To calculate after-tax operating income, we need to subtract operating expenses and taxes from total revenues.

After-tax operating income = Total revenues - Operating expenses - Taxes 
After-tax operating income = $1,120 - $640 - ($120 x 0.3) 
After-tax operating income = $1,120 - $640 - $36 
After-tax operating income = $444 - $36 
After-tax operating income = $408

Therefore, the answer is C) $360.

Kwok Enterprises Has the Following Income Statement