During August, 2014, Joe's Supply Store generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $36,000 and operating expenses of $6,000. The company also had rent revenue of $1,500 and a gain on the sale of a delivery truck of $3,000. Joe's income from operations for the month of August, 2014 is

Question

Quizplus · Accepted Answer

Income from operations is calculated as revenues minus cost of goods sold and operating expenses. Thus, $90,000 (revenues) - $36,000 (cost of goods sold) - $6,000 (operating expenses) = $48,000. Rent revenue and gain on sale are not included in income from operations.

During August, 2014, Joe's Supply Store Generated Revenues of $90,000