The Nellie Company Has Provided the Following Information: Operating Expenses

question 89

Multiple Choice

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.
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What was Nellie's income before taxes?

• A)$514,000.
• B)$612,000.
• C)$497,000.
• D)$298,000.

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Definitions:

Production Possibilities

Different mixtures of products and services that an economy can generate with its current resources and technological capabilities.

Fish

Aquatic animals that are primarily gilled and often harvested for food, sport, or aquariums.

Coconuts

Tropical fruits with a hard shell, edible white flesh, and clear liquid inside, often found in coastal regions.

Factor Of Production

An input used in the creation of a good or service; these include labor, capital, land, and entrepreneurship.