Question
I prepared an income statement for the following information given and I know my income statement is correct because I checked my work using the resources provided online. However, my question is where does the balance of the Income From Operations (78,800) on the income statement come from? i.e... How was this number, 78,800 decided?

BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit $478,800 Net Sales Cost of Goods Sold Salaries and Wages Expen
BIG TOMMY CORPORATION Income Statement For the Year Ended December 31 Net Sales Cost of Goods Sold Gross Profit Expenses $ 47
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Answer #1

Income from operations is the gross profit less all expenses.

Hence, Income from operations =gross profit - expenses=167800-(66000+22000+1000)=167800-89000=$78800

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