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21 December, 19:38

Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as follows:Beginning merchandise inventory on January 1 was $33,200. Ending merchandise inventory on December 31 was $35,000. Purchases during the year were $92,000. Selling and administrative expenses were $75,700. Sales for year were $262,900. What was operating income for the year?

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Answers (1)
  1. 21 December, 20:43
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    The operating income for the year is $97,000

    Explanation:

    For computing the operating income, first, we have to calculate the cost of goods sold. The formula to compute the cost of good sold is shown below:

    = Beginning merchandise inventory + Purchases during the year - Ending merchandise inventory

    = $33,200 + $92,000 - $35,000

    = $90,200

    Now, the operating income would be

    = Sales - the cost of good sold - selling and administrative expenses

    = $262,900 - $90,200 - $75,700

    = $97,000
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Home » Business » Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as follows:Beginning merchandise inventory on January 1 was $33,200. Ending merchandise inventory on December 31 was $35,000.
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