Question

Using the information below, calculate net income for the period.Sales revenues for the period $1,304,000Operating expenses for the period $239,000Finished Goods Inventory, January 1 36,000Finished Goods Inventory, December 31 41,000Cost of goods manufactured for the period $540,000A-$774,000.B-$769,000.C-$530,000.D-$535,000.E-$448,000.

Answer 1

C-$530,000

Step-by-step explanation:

Summarized information

sales revenue = $1,304,000

Operating expenses = $239,000

Opening inventory =$36,000

Ending inventory = $41,000

Cost of manufactured goods= $540,000

required net income

Net income: Gross profit - expenses

calculating gross profit, sales revenue - the cost of goods sold

sale revenue = $1,304,000

cost of goods sold= opening inventory + manufactured goods- closing stock

=$36,000+ $540,000- $41,000= $535,000

Gross profit = $ 1,304,000- $ 535,000 =$769,000

Net income = gross profit - expenses

= $769,000- $239,000

=$530,000