Lantz Company has provided the following information:
Cash sales totaled $255,000.
Credit sales totaled $479,000.
Cash collections from customers for services yet to be provided totaled $88,000.
A $22,000 loss from the sale of plant and equipment occurred.
Interest income was $7,700.
Interest expense was $19,900.
Cost of goods sold was $336,000.
Rent expense was $36,000.
Salaries expense was $49,000.
Other operating expenses totaled $79,000.
How much was Lantz's income before income taxes?
A)$553,800
B)$465,800
C)$487,800
D)$531,800

Question

Lantz Company has provided the following information:
 Cash sales totaled $255,000.
 Credit sales totaled $479,000.
 Cash collections from customers for services yet to be provided totaled $88,000.
 A $22,000 loss from the sale of plant and equipment occurred.
 Interest income was $7,700.
 Interest expense was $19,900.
 Cost of goods sold was $336,000.
Rent expense was $36,000.
 Salaries expense was $49,000.
Other operating expenses totaled $79,000.
How much was Lantz's income before income taxes?
A)$553,800
B)$465,800
C)$487,800
D)$531,800

Quizplus · Accepted Answer

Operating revenues = $734,000 = $255,000 + $479,000Operating expenses = $500,000= $336,000 + $36,000 + $49,000 + $79,000Operating income = $234,000 = $734,000 - $500,000Income before taxes = $465,800 = $500,000 - $22,000 + $7,700 - $19,900

Lantz Company Has Provided the Following Information