Artisan Inspiration,Inc.is a merchandiser of stone ornaments.The company sold 8000 units during the year.The company has provided the following information: $\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 593,000 \
\hline \text { Purchases (excluding Freight In) } & 304,000 \
\hline \text { Selling and Administrative Expenses } & 68,000 \
\hline \text { Freight In } & 14,000 \
\hline \text { Beginning Merchandise Inventory } & 46,000 \
\hline \text { Ending Merchandise Inventory } & 42,000 \
\hline
\end{array}$ What is the operating income for the year? (Round your answer to the nearest whole dollar.)

Question

Artisan Inspiration,Inc.is a merchandiser of stone ornaments.The company sold 8000 units during the year.The company has provided the following information: $\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 593,000 \
\hline \text { Purchases (excluding Freight In) } & 304,000 \
\hline \text { Selling and Administrative Expenses } & 68,000 \
\hline \text { Freight In } & 14,000 \
\hline \text { Beginning Merchandise Inventory } & 46,000 \
\hline \text { Ending Merchandise Inventory } & 42,000 \
\hline
\end{array}$ What is the operating income for the year? (Round your answer to the nearest whole dollar.)

Quizplus · Accepted Answer

Cost of Goods Sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $46,000 + $304,000 + $14,000 - $42,000 = $322,000
Operating Income = Sales Revenue - Cost of Goods Sold - Selling and Administrative Expenses = $593,000 - $322,000 - $68,000 = $203,000

Artisan Inspiration,Inc What Is the Operating Income for the Year? (Round Your