Which of the following statement is NOT correct?

• A. Operating income is equivalent to the sales less cost of goods sold add operating expenses
• B. Firms financing expense resulting from borrowing money has no effect on operating income
• C. Cost of goods sold is the cost of producing or acquiring a product or service to be sold
• D. Operating income is not affected by how much debt the company owes
• E. Depreciation expense is a component of operating expense