Question

Artisan​ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company has provided the following​ information: Sales Revenue $ 571 comma 000 Purchases​ (excluding Freight​ In) 302 comma 000 Selling and Administrative Expenses 69 comma 000 Freight In 14 comma 000 Beginning Merchandise Inventory 44 comma 000 Ending Merchandise Inventory 43 comma 000 What is the operating income for the​ year?

Answer 1

the operating income for the​ year is $185,000

Step-by-step explanation:

Artisan​ Inspiration, Inc. Income Statement

Sales 571,000

Less Cost of Goods Sold :

Opening Stock 44,000

Add Purchases 302,000

Add Freight In 14,000 316,000

Available 360,000

Less Closing Stock (43,000) (317,000)

Gross Profit 254,000

Less Expenses :

Selling and Administrative Expenses (69,000)

Net Income 185,000