Question

Using the information below, calculate net income for the period: Sales revenues for the period $ 1,309,000 Operating expenses for the period 244,000 Finished Goods Inventory, January 1 41,000 Finished Goods Inventory, December 31 46,000 Cost of goods manufactured for the period 545,000

Answer 1

Net income for the period is:

= $525,000.

Step-by-step explanation:

a) Data and Calculations:

Sales revenues for the period $ 1,309,000

Operating expenses for the period 244,000

Finished Goods Inventory, January 1 41,000

Cost of goods manufactured for the period 545,00

Finished Goods Inventory, December 31 (46,000)

Cost of goods sold for the period = 540,000

Income Statement for the period:

Sales revenues for the period $ 1,309,000

Cost of goods sold for the period = (540,000)

Gross profit for the period = $769,000

Operating expenses for the period (244,000)

Net income for the period = $525,000