Jasper is preparing an income statement for his business. He calculated his gross profits but in order to determine the company's profit before and after taxes, Jasper needs to
A) determine operating expenses.
B) calculate owners' equity.
C) subtract income tax expenses.
D) add long-term liabilities.
E) adjust for returns and allowances.

Question

Quizplus · Accepted Answer

To determine the company's profit before taxes, Jasper needs to subtract operating expenses from gross profits. To find the profit after taxes, he would then subtract income tax expenses.

Jasper Is Preparing an Income Statement for His Business