Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company has provided the followingâ information: Sales Revenue $ 590 comma 000 Purchasesâ (excluding Freightâ In) 302 comma 000 Selling and Administrative Expenses 67 comma 000 Freight In 15 comma 000 Beginning Merchandise Inventory 43 comma 000 Ending Merchandise Inventory 43 comma 000 What is the operating income for theâ year?

Question

Chaz Stanton

Business

18 August, 18:39

Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company has provided the followingâ information: Sales Revenue $ 590 comma 000 Purchasesâ (excluding Freightâ In) 302 comma 000 Selling and Administrative Expenses 67 comma 000 Freight In 15 comma 000 Beginning Merchandise Inventory 43 comma 000 Ending Merchandise Inventory 43 comma 000 What is the operating income for theâ year?

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Brylee Clayton · Answer 1

206,000

Explanation:

Sales = 590000

- CGS = 302000

Gross profit = 288,000

Less Operating Expenses:

Sellings and Admin expenses = 67000

Freight in = 15000

Total Operating expenses = 82000

Operating Income = 206,000

CGS = Beginning inventory + Purchases - Ending Inventory

CGS = 43,000 + 302,000 - 43,000 = 302,000