If a company has net sales of $137,000 and costs of goods sold of $82,000 with operating expenses of $39,000, what is the operating income?

To determine the operating income of a company, you need to follow the formula:

Operating Income = Net Sales - Cost of Goods Sold - Operating Expenses.

In this case, you start with the net sales of $137,000. From this amount, you subtract the costs of goods sold, which is $82,000. This calculation gives you the gross profit:

Gross Profit = Net Sales - Cost of Goods Sold Gross Profit = $137,000 - $82,000 = $55,000.

Next, you subtract the operating expenses of $39,000 from the gross profit to arrive at the operating income:

Operating Income = Gross Profit - Operating Expenses Operating Income = $55,000 - $39,000 = $16,000.

Thus, the operating income is $16,000, which corresponds to the choice you provided. The calculation demonstrates the relationship between these financial components, illustrating how operating income reflects the company's profitability after accounting for all direct costs and operating expenses associated with its operations.