Bushway Ltd.has the following income statement items: sales of $50 250 000; income tax of $1 744 000; operating expenses of $10 115 000; cost of goods sold of $35 025 000; and interest expense of $750 000.What is the amount of the firm's income before tax?

Question

Quizplus · Accepted Answer

Income before tax is calculated as Sales - Cost of Goods Sold - Operating Expenses - Interest Expense = $50,250,000 - $35,025,000 - $10,115,000 - $750,000 = $4,360,000.