Question

Crystal, Inc. is a merchandiser of stone ornaments. The company sold​ 8,000 units during the year. The company has provided the following​ information:Sales Revenue​$593,000Purchases​ (excluding Freight​ In)​304,000Selling and Administrative Expenses​68,000Freight In​14,000Beginning Merchandise Inventory​46,000Ending Merchandise Inventory​42,000What is the operating income for the​ year? (Round your answer to the nearest whole​ dollar.)

Answer 1

Answer: $203,000

Explanation:

Cost of goods sold:

= Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory

= $46,000 + $304,000 + $14,000 - $​42,000

=  $322,000

Operating Income:

= Sales Revenue - Cost of Goods Sold - selling and administration expenses

= ​$593,000 - $322,000 - ​68,000

= $203,000