Answer:
Lake's operating income is $120000
Explanation:
Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.
The formula for operating income = Sales - Cost of Sales - operating expenses.
The operating expenses here, are = Advertising + Salaries + Utilities
Thus, operating expenses = 60000 + 55000 + 25000 = $140000
The Operating Income = 440000 - 180000 - 140000 = $120000
Answer:
$120,000
Explanation:
Operating income is an element of the income statement. Income statement is the financial statement that shows the company's revenue and expenses.
The difference between the revenue and the expenses gives the net operating income. Operating income excludes taxes and interest expenses.
Lake's operating income
= $440,000 - $180,000 - $60,000 - $55,000 - $25,000
= $120,000
