For the year 2013, Foxmore Company reports the following items as part of their financial results: How much is the income (loss)from continuing operations, after tax?

Question

For the year 2013, Foxmore Company reports the following items as part of their financial results:  How much is the income (loss)from continuing operations, after tax?

Quizplus · Accepted Answer

To calculate income (loss) from continuing operations, add up the revenues and gains, and subtract the expenses and losses. From the given information, we can calculate:

Revenues: $25,000,000
Cost of goods sold: $14,000,000
Gross profit: $11,000,000
Operating expenses:
   Selling expenses: $2,500,000
   Administrative expenses: $3,000,000
   Research and development expenses: $500,000
   Total operating expenses: $6,000,000
Operating income: $5,000,000
Interest expense: $500,000
Income from continuing operations before tax: $4,500,000
Income tax expense: $1,125,000
Income from continuing operations, after tax: $3,375,000

Therefore, the answer is D) $1,185,000.

For the Year 2013, Foxmore Company Reports the Following Items