How determine what is the operating income

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Problem 1: A manufacturing firm's Income Statement shows Cost of Sales of $50,000, Administrative Expenses of $20,000, Rental Expenses of $5,000, Interest Revenue of $20,000, Interest Expense of $15,000, and Net Income after Taxes of $60,000. Assuming there are no other items to be considered and that the Income Taxes are 25% of Net Income Before Taxes, what is the operating income?

Hint 1: Total sales (or Total Revenue) - Cost of Sales (Or Cost of Goods Sold) - Operating Expenses = Operating Income.

Hint 2: Interest revenue, interest expense, and income tax are not part of operating income.

Option 1: $145,000

Option 2: $150,000

Option 3: $75,000

Option 4: $80,000

Reference no: EM132614918

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