Q1) Li Retailing reported the items which are given below for the current year:
Sales = $1,000,000;
Cost of Goods Sold = $700,000;
Depreciation Expense = $40,000;
Administrative Expense = $70,000;
Interest Expense = $30,000;
Marketing Expense = $50,000; and
Taxes = $40,000.
Li's operating income is:
a. $140,000
b. $110,000
c. $100,000
d. $300,000