Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 557,000 \
\hline \text { Purchases (excluding freight in) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 69,000 \
\hline \text { Freight In } & 15,000 \
\hline \text { Beginning Merchandise Inventory } & 45,000 \
\hline \text { Ending Merchandise Inventory } & 55,700 \
\hline
\end{array}$$ What is the operating income for 2015?
A) $183,700
B) $304,300
C) $252,700
D) $257,000

Question

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 557,000 \
\hline \text { Purchases (excluding freight in) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 69,000 \
\hline \text { Freight In } & 15,000 \
\hline \text { Beginning Merchandise Inventory } & 45,000 \
\hline \text { Ending Merchandise Inventory } & 55,700 \
\hline
\end{array}$$ What is the operating income for 2015?
A) $183,700
B) $304,300
C) $252,700
D) $257,000

Quizplus · Accepted Answer

The operating income is calculated as follows:Sales Revenue - Cost of Goods Sold - Selling and Administrative Expenses = Operating IncomeCost of Goods Sold = Beginning Merchandise Inventory + Purchases - Ending Merchandise InventoryCost of Goods Sold = 45,000 + 300,000 - 55,700 = 289,300Operating Income = 557,000 - 289,300 - 69,000 = 183,700

Crystal Inc What Is the Operating Income for 2015? A) $183,700 B)

Crystal Inc What Is the Operating Income for 2015?
A) $183,700
B)