What is the operating income for the year? (Round your answer to the nearest whole dollar.)
Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8000 units during the
year. The company has provided the following information:
A) $203,000
B) $322,000
C) $271,000
D) $525,000
A) $203,000
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 Administrative Expenses =
$593,000 - $322,000 - $68,000 = $203,000
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What will be an ideal response?
For the past five years, Mookie Consulting Services reported the following annual net income and dividend amounts: YearNet IncomeDividends1$22,000 $2,000 2 17,000 2,000 3 9,000 1,000 4 14,000 3,000 5 25,000 4,000 If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of Year 1?
A. $13,000. B. $7,000. C. $1,000. D. $25,000.