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A company reported the following: Cost of Goods Sold $201,200 General, Selling, and Administrative Expenses 52,920 Income Tax Expense 3,720 Inventory 30,000 Net Income 23,880 Sales Revenue 287,000 Sales Discounts 2,840 Sales Returns & Allowances 2,440 What is the amount of income before income taxes?



Answer :

Parrain

Based on the Net Income and the Income tax expense, the amount of income before income taxes is $27,600

How to find the pre-tax income?

The pre-tax income or income before income taxes, is the net income that they come has before they have to deduct company income taxes from it.

The formula for the income before income taxes is:

Income before income taxes = Net income + Income tax expenses

Solving for income before income taxes gives:

Income before income taxes = 23,880 + 3,720

Income before income taxes = $27,600

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