1 answer

23. 2 pts Question 23 Porches, Inc. sells lawn furniture. Selected financial information for the most...

Question:

23.
2 pts Question 23 Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as follows:
2 pts Question 23 Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as follows: Beginning merchandise inventory on January 1 was $33,000. Ending merchandise inventory on December 31 was $35,000. Purchases during the year were $92,000. Selling and administrative expenses were $75,000. Sales for year were $262.000. What was operating income for the year? $95,000 $93,000 $90,000 O $97,000

Answers

Solution:

Cost of goods sold = beginning inventory + purchases - ending inventory = 33000+ 92000 -35000 = $90,000

Operating income = sales - cost of goods sold - selling and administrative expense

= 262000 - 90000 - 75000

= $97,000

.

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