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Buttery Ice-Cream had sales of $7.25 million in 2020. Its cost of goods sold was $4.5...

Buttery Ice-Cream had sales of $7.25 million in 2020. Its cost of goods sold was $4.5 million, and it had $1.2 million in selling, general, and administrative expenses. It paid interest of $21000 and dividends to its shareholders of $16000. For simplicity, assume a flat tax rate of 31%. The firmʹs operating profit in 2020 was

$1,039,010
$1,529,000                                                 
$1,055,010
$1,550,000
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Answer #1

Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization

=7.25 million-4.5 million-1.2 million

=1.55 million

The answer is d)

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