During August 2016 Shelby's Supply Store generated revenues of $65000. The company's expenses were as follows: cost of goods sold of $33000 and operating expenses of $7000. The company also had rent revenue of $2000 and a loss on the sale of a delivery truck of $3000. Shelby's operating income for the month of August 2016 is

Question

Quizplus · Accepted Answer

Operating income is calculated as total revenues minus cost of goods sold and operating expenses. Thus, $65000 (revenues) - $33000 (cost of goods sold) - $7000 (operating expenses) = $25000. Rent revenue and loss on sale of a delivery truck are not included in operating income.

During August 2016 Shelby's Supply Store Generated Revenues of $65000