A company's income statement shows net sales of $800,000, cost of goods sold of $480,000, and operating expenses of $160,000. What is the company's operating income?

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Multiple choice — select the best answer

A$320,000
B$160,000
C$640,000
D$480,000

✓ Correct answer: B. $160,000 Operating income equals gross profit minus operating expenses; gross profit is $800,000 - $480,000 = $320,000, and $320,000 - $160,000 = $160,000 in operating income.

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Topic: Uniform Investment Adviser Law

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A company's income statement shows net sales of $800,000, cost of goods sold of $480,000, and operating expenses of $160,000. What is the company's operating income?

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