61. Income Statement Calculation  

ABC Corporation reports the following financial information: Sales Revenue $300,000, Cost of Goods Sold $120,000, Operating Expenses $70,000, Interest Expense $10,000, and Income Tax Expense $20,000. Calculate the net income for ABC Corporation and explain the calculation.

To calculate ABC Corporation's net income, we begin with the company's total revenue and deduct various expenses. Starting with sales revenue, we subtract the cost of goods sold to arrive at gross profit. Then, we subtract operating expenses, interest expense, and income tax expense to determine the net income, which represents the company's profit after accounting for all expenses.