Calculating Profit from Income Statement Data

Steps:

• Identify total revenue from sales in income accounts.
• Subtract cost of goods sold (COGS) to find gross profit.
• Deduct operating expenses from gross profit to get net profit.
• Verify calculations match option values.

Why B is correct:

• Income accounts yield revenue of 170,000 and net profit of 25,000 using the formula: Net Profit = Revenue - COGS - Expenses.

Why the others are wrong:

• A uses 15,000 net profit, understating by ignoring full expense deduction.
• C uses 150,000 revenue, misreading total sales figure.
• D combines incorrect revenue of 150,000 with overstated net profit of 25,000.

Final answer: B