Question

The following information was extracted from the 2020 financial statements of Arigato LLC:

Income from continuing operations before income tax           $755,123

Selling and administrative expenses                                            480,357

Income from continuing operations                                            495,951

Gross profit                                                                                           1,357,530

The amount reported for Other Revenue/Gains and Other Expenses/Losses is: $  Blank 1. Fill in the blank, read surrounding text.

Use “-“ sign for negative amount, as needed. Use commas, as needed.

Answer 1

Operating Income = Gross profit - Selling and administrative expense

=  1,357,530 - 480,357 = $877,173

Other Revenue/Gains and Other Expenses/Losses = Income from continuing operations before income tax - operating inocme

= 755,123 - 877,173

= - $122,050