The following information relates to Nebula Inc. $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 230,000 \
\hline \text { Cost of Goods Sold } & 150,000 \
\hline \text { Interest Revenue } & 10,000 \
\hline \text { Operating Expenses } & 42,500 \
\hline \text { Sales Discounts } & 20,000 \
\hline \text { Sales Returns and Allowances } & 5,000 \
\hline
\end{array}$$ Calculate the operating income.

Question

The following information relates to Nebula Inc. $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 230,000 \
\hline \text { Cost of Goods Sold } & 150,000 \
\hline \text { Interest Revenue } & 10,000 \
\hline \text { Operating Expenses } & 42,500 \
\hline \text { Sales Discounts } & 20,000 \
\hline \text { Sales Returns and Allowances } & 5,000 \
\hline
\end{array}$$ Calculate the operating income.

Quizplus · Accepted Answer

Operating income = Sales Revenue - Cost of Goods Sold - Operating Expenses= $230,000 - $150,000 - $42,500= $12,500

The Following Information Relates to Nebula Inc Calculate the Operating Income