Question

Please explain simply and thoroughly

Given the following accounts and balances, how much is income before taxes?  

Advertising Expense, $2,789	Cost of Goods Sold, $47,137
Depreciation Expense, $3,977	Freight Out, $2,183
Gain on Sale of Land, $1,296	Interest Expense, $468
Interest Revenue, $252	Loss on Sale of Investments, $297
Net Sales, $99,871	Property Tax Expense, $748
Sales Commissions, $10,513	Wages Expense, $7,045

Income Tax Expense is 40% of Income before Taxes

Answer 1

income before tax = 26262

income statement

Revenues:
Net sales	99871
Gain on sale of land	1296
Interest revenue	252
Total revenue		101419
Less: expenses
Advertising Expense	2789
Depreciation Expense	3977
Sales Commissions	10513
Cost of Goods Sold	47137
Freight Out	2183
Interest Expense	468
Loss on Sale of Investments	297
Property Tax Expense	748
Wages Expense	7045
Total expenses		75157
Income before tax		26262
Less: income tax (40%)		10505
Net income		15757