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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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  1. 6 May, 06:25
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    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
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