Crystal Ltd is a retailer of stone ornaments.The company sold 8000 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | }
\hline \text { Sales revenue } & \$ 593,000 \
\hline \text { Purchases (excluding freight in) } & 302,000 \
\hline \text { Selling and administrative expenses } & 66,000 \
\hline \text { Freight in } & 13,000 \
\hline \text { Beginning inventory } & 44,000 \
\hline \text { Ending inventory } & 42,000 \
\hline
\end{array}$$
What is the operating profit for 2017?

Question

Crystal Ltd is a retailer of stone ornaments.The company sold 8000 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | } 
\hline \text { Sales revenue } & \$ 593,000 \
\hline \text { Purchases (excluding freight in) } & 302,000 \
\hline \text { Selling and administrative expenses } & 66,000 \
\hline \text { Freight in } & 13,000 \
\hline \text { Beginning inventory } & 44,000 \
\hline \text { Ending inventory } & 42,000 \
\hline
\end{array}$$
What is the operating profit for 2017?

Quizplus · Accepted Answer

Operating profit = Sales revenue - Cost of goods sold - Selling and administrative expensesCost of goods sold = Purchases + Freight in - Ending inventory + Beginning inventory= 302,000 + 13,000 - 42,000 + 44,000= 319,000Operating profit = 593,000 - 319,000 - 66,000= 210,000

Crystal Ltd Is a Retailer of Stone Ornaments What Is the Operating Profit for 2017? A) $210,000 B)

Crystal Ltd Is a Retailer of Stone Ornaments What Is the Operating Profit for 2017?
A) $210,000
B)