The Income Statement of Ride-On Motors, an Automotive Manufacturer, for the Year

Multiple Choice

The income statement of Ride-on Motors, an automotive manufacturer, for the year ended December 31, 20x1, reported revenues $7,400 million and cost of sales of $6,000 million.In addition, it reported other operating expenses of $900 million, a loss of $2 million on the sale of a business, and net financing income of $200 million.Tax expense for the year was $100 million.Compute the amount of net income or loss that Ride-on Motors reported for 20x1.

A) net income of $198 million
B) net income of $698 million
C) net loss of $698 million
D) net income of $598 million
E) net loss of 598 million