Question

The following amounts appeared in a classified income statement: Net sales - $85,000 Net cost of purchases - $22,000 Cost of
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Answer #1

Answer

$ 40,000

Calculations:

Income from operations = Sales - Cost of goods sold - Operating expenses

= $ 85,000 - $ 30,000 - $ 15,000

= $ 40,000

Note: Purchases are already included in the Cost of Goods sold.

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