Can you easily define what operating income is and why is depreciation,amortization, and accumulated depletion an operating expense? Als please provide examples of what non operating expenses are. Please calculate the three questions on the second page. For gain on sale from land for $10,000 where do you add that to ? operating income? And For Earnings before Income Tax how do you get that number? And for net income wouldnt you subtract interest and tax expense for the net income?

JRL Company Chart of Accounts $ Amount Accounts Payable 90,000 189,000 Accounts Receivable Accumulated Ammortization 5,000 2,000 Accumulated Depletion Accumulated Depreciation 40,000 Administrative Expense 25,000 Advertising Expense 14,000 10,000 Ammortization Expense 200,000 $80,000 Bank loan due in 3 years Bonds payable in 6 months Building 50,000 Cash $110,000 5 150,000 Common Stock x Cost of Goods Sold 300,000 42,000 15,000 18,000 Depletion Expense Depreciation Expense Dividends Paid 24,000 10,000 4,000 Equipment Gain on Sale of Equipment Goodwil ncome Tax Expense 50,000 30,000 8,000 25,000 $168,000 $ 210,000 35,000 20,000 Intangible Assets p!Interest Expense Interest Payable in 18 months Inventory Land Loan due in 3 months Natural Resource (Oil Well) Rent Expense Rent due in 8 months Retained Earnings 14,000 14,000 $ 168,000 74,000 Salaries Payable Sales Revenue $14,000 $ 1,000,000 Supplies Expense Utilities Expense 1,000 48,000