The following information relates to Sports Bikes Company. $$\begin{array} { | l | r | }
\hline \text { Net Sales Revenue } & \$ 203,000 \
\hline \text { Cost of Goods Sold } & 160,000 \
\hline \text { Interest Revenue } & 10,000 \
\hline \text { Operating Expenses } & 40,000 \
\hline
\end{array}$$ Calculate the operating income.
A) $3,000
B) $60,000
C) $230,000
D) $13,000

Question

The following information relates to Sports Bikes Company. $$\begin{array} { | l | r | } 
\hline \text { Net Sales Revenue } & \$ 203,000 \
\hline \text { Cost of Goods Sold } & 160,000 \
\hline \text { Interest Revenue } & 10,000 \
\hline \text { Operating Expenses } & 40,000 \
\hline
\end{array}$$ Calculate the operating income.
A) $3,000
B) $60,000
C) $230,000
D) $13,000

Quizplus · Accepted Answer

Operating income is calculated as Net Sales Revenue minus Cost of Goods Sold minus Operating Expenses. Therefore, it's $203,000 - $160,000 - $40,000 = $3,000. Interest Revenue is not considered in operating income calculation.

The Following Information Relates to Sports Bikes Company Calculate the Operating Income