John’s Manufacturing Inc. prepares its quarterly financial statements and is reviewing its income statement for the past quarter. The company reported the following amounts: Sales Revenue: $500,000 Cost of Goods Sold (COGS): $300,000 Operating Expenses: $100,000 Interest Expense: $20,000 Taxes: $15,000 Based on these figures, what is John’s Manufacturing Inc.'s net income for the quarter?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Net Income Calculation for John's Manufacturing Inc.

Medium Financial Statements Income Statement

John’s Manufacturing Inc. prepares its quarterly financial statements and is reviewing its income statement for the past quarter. The company reported the following amounts:

Sales Revenue: $500,000
Cost of Goods Sold (COGS): $300,000
Operating Expenses: $100,000
Interest Expense: $20,000
Taxes: $15,000

Based on these figures, what is John’s Manufacturing Inc.'s net income for the quarter?

$65,000

$55,000

$45,000

Hint

Submitted6.8K

Correct4.0K

% Correct59%