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.)
A)$203,000
B)$322,000
C)$271,000
D)$525,000

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.)
A)$203,000
B)$322,000
C)$271,000
D)$525,000

Quizplus · Accepted Answer

Operating income = Sales Revenue - Cost of Goods Sold - Selling and Administrative ExpensesCost of Goods Sold = Beginning Merchandise Inventory + Purchases (excluding Freight In) + Freight In - Ending Merchandise InventoryCost of Goods Sold = 46,000 + 304,000 + 14,000 - 42,000 = 322,000Operating income = 593,000 - 322,000 - 68,000 = 203,000

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