During 2010, Yoder Enterprises generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $30,000, operating expenses of $12,000 and a loss on the sale of equipment of $2,000.
Yoder's income from operations is
A) $60,000.
B) $30,000.
C) $18,000.
D) $12,000.

Question

Quizplus · Accepted Answer

Income from operations is calculated by subtracting cost of goods sold and operating expenses from revenues. Therefore, Yoder's income from operations is $60,000 - $30,000 - $12,000 = $18,000. The loss on the sale of equipment is not included in the calculation of income from operations.

During 2010, Yoder Enterprises Generated Revenues of $60,000