Question

A firm's income statement shows sales revenue of$100,000, cost of sales $60,000, administrative expenses of $10,000, rental expenses of $20,000, interest revenue$10,000 interest expenses $5000. What is the firms operating income

Answer 1

Answer:

Income = Revenue - Expenses

Income of firm = 75,000

Explanation:

so,

Revenue = 1,00,000 + 10,000 = 1,10,000

Expenses = 10,000 + 20,000 + 5,000 = 35,000

Income = 1,10,000 - 35,000

= 75,000