Using the information below, calculate net income for the period. Sales revenues for the period $1,304,000Operating expenses for the period $239,000Finished Goods Inventory, January 1 36,000Finished Goods Inventory, December 31 41,000Cost of goods manufactured for the period $540,000A-$774,000. B-$769,000. C-$530,000. D-$535,000. E-$448,000.

Question

Business

Marina

17 May, 00:17

Using the information below, calculate net income for the period. Sales revenues for the period $1,304,000Operating expenses for the period $239,000Finished Goods Inventory, January 1 36,000Finished Goods Inventory, December 31 41,000Cost of goods manufactured for the period $540,000A-$774,000. B-$769,000. C-$530,000. D-$535,000. E-$448,000.

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Answers (1)

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Lawson Dorsey · Answer 1

C-$530,000

Explanation:

Summarized information

sales revenue = $1,304,000

Operating expenses = $239,000

Opening inventory = $36,000

Ending inventory = $41,000

Cost of manufactured goods = $540,000

required net income

Net income: Gross profit - expenses

calculating gross profit, sales revenue - the cost of goods sold

sale revenue = $1,304,000

cost of goods sold = opening inventory + manufactured goods - closing stock

=$36,000 + $540,000 - $41,000 = $535,000

Gross profit = $ 1,304,000 - $ 535,000 = $769,000

Net income = gross profit - expenses

= $769,000 - $239,000

=$530,000