Question

Use the appropriate information from the data provided below: Research and development expenses $ 22,000 Loss from discontinued operations 8,000 Provision for income taxes 17,000 Net sales 255,000 Interest expense 18,000 Net cash provided by operations 38,000 Gross profit 73,000 Selling, general and administrative expenses 15,000 Accounts receivable 34,000 Required: Calculate operating income for the year ended December 31, 2023.

Answer 1

To calculate the operating income for the year, subtract research and development expenses, selling, general, and administrative expenses, and interest expense from the gross profit, which results in an operating income of $18,000 for the year ended December 31, 2023.

Step-by-step explanation:

To calculate the operating income for the year ended December 31, 2023, we need to consider certain financial figures from the data provided. The formula to compute operating income is the gross profit minus operating expenses, which include research and development expenses, selling, general and administrative expenses, and interest expense, but do not include loss from discontinued operations or provision for income taxes. Therefore, the calculation for operating income would be as follows:

Gross Profit: $73,000

- Research and development expenses: $22,000

- Selling, general, and administrative expenses: $15,000

- Interest expense: $18,000
Operating Income: $73,000 - ($22,000 + $15,000 + $18,000) = $18,000