Answer: $203,000
Step-by-step explanation:
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 administration expenses
= $593,000 - $322,000 - 68,000
= $203,000