The following information has been provided by Hale Company: • Advertising expense $8,800; • Interest expense $3,800; • Rent expense for store $18,000; • Loss on sale of property and equipment $6,600; • Cost of goods sold $22,200; • Depreciation expense $8,000; • Prepaid insurance $1,900. How much were Hale's total expenses in calculating operating income?

Question

Frances Morgan

Business

6 May, 06:18

The following information has been provided by Hale Company: • Advertising expense $8,800; • Interest expense $3,800; • Rent expense for store $18,000; • Loss on sale of property and equipment $6,600; • Cost of goods sold $22,200; • Depreciation expense $8,000; • Prepaid insurance $1,900. How much were Hale's total expenses in calculating operating income?

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Answers (1)

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Aliya Levy · Answer 1

Hale's total expenses in calculating operating income is $57000

Explanation:

Operating income represents profit realized in carrying out Hale Company primary activities

Only expenses incurred in are considered in calculation of Hale's Operating Income

Cost of Sales

Cost of goods sold 22200

Administration

Rent expenses for store 18000

Depreciation 8000

Selling and distribution expenses

Advertising 8800

Total Expenses 57000