Question

Help The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company's fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; seling expense, $126; general and administrative expense, $105; interest expense, $40; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 25%. Assume the company's accountant prepared a multiple-step income statement a. What amount would appear in that statement for operating income? b. What amount would appear in that statement for nonoperating income? (For all requirements, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) a. Operating income b. Nonoperating income million million < Prev 2 of 8 !!! Next > 20 stv

Answer 1

Operating incomealso called income from operations takes a company's gross income, which is equivalent to total revenue minus COGS, and subtracts all operating expenses.

Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations. It can include items such as dividend income, profits or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs.

Particular	Amount(Millions)
Sale	2,106.00
Total Sale (A)	2,106.00
Cost of Good sold	-1,240.00
Selling Expense	-126.00
General and Administrative	-105.00
Operating Expense (B)	-1,471.00
Operating Income (A-B)	635.00
Gain on sale of investment	45.00
Interest Expenese	-40.00
Non operating Income	5.00