APSCO Lighting, Inc., had a gross profit of $234,000 for the last twelve-month period. Operating expenses were $185,000. What was APSCO's net income before taxes?
A) $490,000
B) $234,000
C) $185,000
D) $49,000
E) $41,000

Question

Quizplus · Accepted Answer

We can use the formula: Net Income = Gross Profit - Operating Expenses
Substituting given values, we get:
Net Income = $234,000 - $185,000
Net Income = $49,000
Therefore, the net income before taxes for APSCO Lighting, Inc. was $49,000. Option D is the correct answer.