Artisan Inspiration,Inc.is a merchandiser of stone ornaments.The company sold 8000 units during the year.The company has provided the following information:

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:

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