Smith Co, reported $750,000 in Sales, $325,000 in Cost of Goods Sold, and Net Income of $150,000. What were Smith Co.'s Operating Expenses? A) $425,000 B) $275,000 C) $475,000 D) $325,000 For this question, you need to understand the relationship of numbers on an Income Statement. More specifically, Net Income = Sales-Cost of Goods Sold - Operating Expenses. Here's the first step to solving this problem, writing it out