Question : 51. Which of the following best describes income from operations? A. It includes : 1228512

51. Which of the following best describes income from operations? 
A. It includes the results of discontinued operations.
B. It includes extraordinary items.
C. It is sales minus cost of goods sold and income tax expense.
D. It is net sales minus cost of goods sold and operating expenses.

52. The Callie Company has provided the following information:
? Operating expenses were $231,000;
? Cost of goods sold was $376,000;
? Net sales were $940,000;
? Interest expense was $32,000;
? Gain on sale of a building was $76,000;
? Income tax expense was $151,000.
What was Callie’s gross profit? 
A. $564,000
B. $188,000
C. $333,000
D. $232,000

53. The Callie Company has provided the following information:
? Operating expenses were $231,000;
? Cost of goods sold was $376,000;
? Net sales were $940,000;
? Interest expense was $32,000;
? Gain on sale of a building was $76,000;
? Income tax expense was $151,000.
What was Callie’s income from operations? 
A. $333,000
B. $188,000
C. $156,000
D. $232,000

54. The Callie Company has provided the following information:
? Operating expenses were $231,000;
? Cost of goods sold was $376,000;
? Net sales were $940,000;
? Interest expense was $32,000;
? Gain on sale of a building was $76,000;
? Income tax expense was $151,000.
What was Callie’s income before taxes? 
A. $564,000
B. $188,000
C. $377,000
D. $232,000

55. Which of the following is not reported as an operating expense on the income statement? 
A. Administrative expenses
B. Research and development expense
C. Interest expense
D. Selling expenses

56. The Nellie Company has provided the following information:
? Operating expenses were $115,000;
? Gross profit was $629,000;
? Cost of goods sold was $470,000
? Interest expense was $17,000;
? Extraordinary loss was $29,000;
? Income tax expense was $199,000.
What was Nellie’s operating income? 
A. $514,000
B. $54,000
C. $497,000
D. $298,000

57. The Nellie Company has provided the following information:
? Operating expenses were $115,000;
? Gross profit was $629,000;
? Cost of goods sold was $470,000
? Interest expense was $17,000;
? Extraordinary loss was $29,000;
? Income tax expense was $199,000.
What was Nellie’s income before taxes? 
A. $514,000
B. $54,000
C. $497,000
D. $298,000

58. The Willie Company has provided the following information:
? Operating expenses were $345,000;
? Income from operations was $215,000;
? Net sales were $1,100,000;
? Interest expense was $71,000;
? Discontinued operations loss was $87,000;
? Income tax expense was $58,000.
What was Willie’s cost of gross profit? 
A. $540,000
B. $469,000
C. $618,000
D. $560,000

59. The Willie Company has provided the following information:
? Operating expenses were $345,000;
? Income from operations was $215,000;
? Net sales were $1,100,000;
? Interest expense was $71,000;
? Discontinued operations loss was $87,000;
? Income tax expense was $58,000.
What was Willie’s income before taxes? 
A. $144,000
B. $57,000
C. $215,000
D. $539,000

60. Which of the following would not be a component of income from operations? 
A. Gross profit
B. Selling and administrative expenses
C. Dividend income
D. Research and development expense