Question

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Below are amounts found in the income statements of three companies.

Company	Sales Revenue				Cost of Goods Sold				Operating Expenses				Non-operating Expenses				Income Tax Expense
Henry	$	30,000			$	6,000			$	4,900			$	1,900			$	1,900
Grace		33,000				23,760				13,000				6,900				0
James		38,000				24,320				2,900				0				2,900

Required:

1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.)

	Gross Profit	Operating Income	Income Before Income taxes	Net Income / Loss
Henry
Grace
James

Answer 1