Question

The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of goods sold was $470,000; Interest expense was $17,000; Income tax expense was $199,000. What was Nellie's operating income?A) $514,000.
B) $612,000.
C) $497,000.
D) $298,000.

Answer 1

Answer:

A) $514,000.

Explanation:

Operating income = Gross profit - Operating expenses

Operating income = $629,000 - $115,000

Operating income = $514,000