The December 31, 2019 Income Statement of Jackson Industries is shown below

Jackson began 2019 with an interest payable account balance of $16 million. On December 31, 2019, its interest payable account balance is $17 million. How much interest was paid during 2019?

• $4 million
• $5 million
• $6 million
• $7 million

Transcribed Image Text:

Jackson Industries Income Statement for year Ending December 31, 2019 (amounts in millions) Sales Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Operating Income Less: Interest Expenses Income Before Taxes Less: Tax Expense Net Income $175.0 $95.0 $80.0 $40.0 $40.0 $5.0 $35.0 $7.0 $28.0 Jackson Industries Income Statement for year Ending December 31, 2019 (amounts in millions) Sales Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Operating Income Less: Interest Expenses Income Before Taxes Less: Tax Expense Net Income $175.0 $95.0 $80.0 $40.0 $40.0 $5.0 $35.0 $7.0 $28.0

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