XYZ Technologies operates in the software development industry and has reported the following information on its income statement for the fiscal year ending December 31, 2022: Revenue: $2,500,000 Cost of Goods Sold: $1,000,000 Selling, General and Administrative Expenses: $700,000 Research and Development Expenses: $300,000 Other Income: $50,000 Income Tax Expense: $100,000 Based on the above information, what is the net income reported by XYZ Technologies for the year ended December 31, 2022?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Net Income Calculation for XYZ Technologies

Very Hard Financial Statements Income Statement

XYZ Technologies operates in the software development industry and has reported the following information on its income statement for the fiscal year ending December 31, 2022:

Revenue: $2,500,000
Cost of Goods Sold: $1,000,000
Selling, General and Administrative Expenses: $700,000
Research and Development Expenses: $300,000
Other Income: $50,000
Income Tax Expense: $100,000

Based on the above information, what is the net income reported by XYZ Technologies for the year ended December 31, 2022?

$1,350,000

$1,150,000

$1,200,000

Hint

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