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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.
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