Question

Using the information below, calculate net income for the period:

Sales revenues for the period $1,323,000
Operating expenses for the period 258,000
Finished Goods Inventory, January 1 55,000
Finished Goods Inventory, December 31 60,000
Cost of goods manufactured
for the period 559,000
A. $774,000.B. $769,000.C. $530,000.D. $535,000.E. $448,000.

Answer 1

See explanation

Step-by-step explanation:

The correct choice is not available : Net Income is $511,000

We determined this as follows :

Income Statement for the ended December 31

Sales $1,323,000

Less Cost of Sales

Opening Finished Goods Inventory $55,000

Add Cost of goods manufactured $559,000

Less Ending Finished Goods Inventory ($60,000) ($554,000)

Gross Profit $769,000

Less Expenses

Operating expenses ($258,000)

Net Income $511,000