Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory 40,000 Purchases 80,000 Purchase discounts 3,000 Freight-in 1,000 Ending inventory 30,000 Purchases returns and allowances 2,000 Given the information above, and assuming that Lindsay's total operating expenses (exclusive of the cost of goods sold) are $40,000, pretax income is a. $114,000 b. $110,000 c. $46,000 d. $74,000
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Lindsey Corporation had the following account balances:
Sales revenue $200,000
Beginning inventory 40,000
Purchases 80,000
Purchase discounts 3,000
Freight-in 1,000
Ending inventory 30,000
Purchases returns and allowances 2,000
Given the information above, and assuming that Lindsay's total operating expenses (exclusive of the cost of goods sold) are $40,000, pretax income is
a. $114,000
b. $110,000
c. $46,000
d. $74,000
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