LeGrand Corporation Reported the Following Amounts in Its Income Statement

question 1

Multiple Choice

LeGrand Corporation reported the following amounts in its income statement: What was LeGrand's net income?
$$\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 440,000 \\\hline \text { Advertising expense } & 60,000 \\\hline \text { Interest expense } & 10,000 \\\hline \text { Salaries expense } & 55,000 \\\text { Utilities expense } & 25,000 \\\hline \text { Income tax expense } & 45,000 \\\hline \text { Cost of goods sold } & 180,000 \\\hline\end{array}$$

• A)$120,000.
• B)$60,000.
• C)$110,000.
• D)$65,000.

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Definitions:

Primary Financial Records

Essential documents that record and detail the financial activities and condition of a business or individual, such as income statements, balance sheets, and cash flow statements.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other industries.

Financial Ratios

Quantitative measures derived from financial statements used to evaluate a company's financial performance and condition.

Cash Flow Management

The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses in a business.