Understanding income statement relationships 

During the year, cost of goods sold was $120,000; income from operations was $114,000
and selling, general, and administrative expenses were $66,000.

Required:
Calculate net sales, gross profit, income before taxes, and net income. (Hint: Exhibit 2-2 may be

Given:
Cost of Goods Solds= 120000
Income from Operations= 114000
Income Tax Expense= 24000
Interest Expense= 18000
Selling, General, Admin Expense= 66000

Calculate: Red are values solved for

Net Sales 300000
Cost of Goods Sold 120000
Gross Profit 180000
Selling, General, Admin Expense 66000
Income from Operations 114000
Interest Expense 18000
Income Before Taxes 96000
Income Tax Expense 24000

Net Income 72000

rom operations was $114,000; income tax expense was $24,000; interest expense was $18,000;
expenses were $66,000.

me. (Hint: Exhibit 2-2 may be used as a solution model.)