Income Statement Calculation
ABC Company reports the following information: Sales Revenue $200,000, Cost of Goods Sold $80,000, Operating Expenses $50,000, Interest Expense $5,000, and Income Tax Expense $10,000. Calculate the net income for ABC Company and provide an explanation of the calculation.
ABC Company's net income is calculated as follows: Net Income = Sales Revenue - Cost of Goods Sold - Operating Expenses - Interest Expense - Income Tax Expense = $200,000 - $80,000 - $50,000 - $5,000 - $10,000 = $55,000