Consider the following year-end information for Spitzer Corporation: What amount will Spitzer report for operating income?
$$\begin{array} { | l | r | }
\hline \text { Cost of goods sold } & \$ 420,000 \
\hline \text { Sales revenue } & 800,000 \
\hline \text { Nonoperating expenses } & 10,000 \
\hline \text { Operating expenses } & 170,000 \
\hline \text { Income tax expense } & 80,000 \
\hline
\end{array}$$

Question

Consider the following year-end information for Spitzer Corporation: What amount will Spitzer report for operating income?
$$\begin{array} { | l | r | } 
\hline \text { Cost of goods sold } & \$ 420,000 \
\hline \text { Sales revenue } & 800,000 \
\hline \text { Nonoperating expenses } & 10,000 \
\hline \text { Operating expenses } & 170,000 \
\hline \text { Income tax expense } & 80,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Operating income is calculated by subtracting the cost of goods sold and operating expenses from sales revenue. Thus, operating income = $800,000 - $420,000 - $170,000 = $210,000. Nonoperating expenses and income tax expense are not considered in the calculation of operating income.

Consider the Following Year-End Information for Spitzer Corporation: What Amount