Question

Selling. general, and administrative expenses were $80,000, net sales were $390,000, interest expense was $16.000: research and development expenses were $34,000, net cash provided by operating activities was $42,000; income tax expense was $10,000, cost of goods sold was $220,000. Operating income for the period was: Help Save & Exit Submit 07:12 Multiple Choice O $98,000 O O $56.000 o O $30.000 o C 10000 < Prev 25 of 50 Next >

Answer 1

Answer:

$30,000

Explanation:

The computation of the operating income is shown below:

= Net sales - the cost of goods sold - Selling. general, and administrative expenses -  research and development expenses - interest expense - income tax expense

= $390,000 - $220,000 - $80,000 - $34,000 - $16,000 - $10,000

= $30,000

The net cash provided by operating activities is a part of the cash flow statement which does not consider for computation of the operating income. Hence, it would be ignored.  

All revenues and all expenses are to be considered for computing the operating income.