Net Income Calculation from Income Statement

In accordance with generally accepted accounting principles (GAAP), companies report their financial performance over a specific time period on their income statements. The income statement includes revenues, expenses, and the resulting net income or net loss. When a company sells goods or provides services, it recognizes revenues, and when it incurs costs associated with those revenues, those costs are reported as expenses.

Consider Company XYZ, which reports the following items for the year ended December 31, 2022:

• Total Revenues: $500,000
• Cost of Goods Sold (COGS): $300,000
• Operating Expenses: $150,000
• Interest Expense: $20,000
• Tax Expense: $10,000

What is the net income for Company XYZ for the year ended December 31, 2022?