Smith Corporation has provided the following information: Cash sales totaled $125,000. Credit sales totaled $279,000. Cash...

Smith Corporation has provided the following information: Cash sales totaled $125,000. Credit sales totaled $279,000. Cash collections from customers for services yet to be provided totaled $38,000. An $11,000 gain from the sale of property and equipment occurred. Interest income totaled $7,700. How much of these items were included in operating income?

A)$460,700.

B)$442,000.

C)$411,700.

D)$415,000.

Expert Solution

In the absence of $4,04,000, The answer could be $4,11,700

Determination of Amount to be included in operating income

Cash Sales $1,25,000

Credit Sales $2,79,000

Operating Income $4,04,000

In this question,There is no choice in the answers for the amount $4,04,000, But there is option for $4,11,700 which can be determined after considering the Income of $7,700......

In normal cases, Interest income shall not be considered as a part of Operating Income

ekkarill92 answered 2 years ago

Lant Company has provided the following information: • Cash sales totaled $220,000. • Credit sales totaled...

Lant Company has provided the following information: • Cash sales totaled $220,000. • Credit sales totaled $482,000. • Cash collections from customers for services yet to be provided totaled $82,000. • A $18,000 loss from the sale of property and equipment occurred. • Interest income was $8,000. • Interest expense was $18,200. • Supplies expense was $320,000. • Rent expense for the store was $32,000. • Wages expense was $42,000. • Other operating expenses totaled $72,000. • Unearned revenue was...

1)Lantz Company has provided the following information: Cash sales totaled $200,000. Credit sales totaled $480,000. Cash...

1)Lantz Company has provided the following information: Cash sales totaled $200,000. Credit sales totaled $480,000. Cash collections from customers for services yet to be provided totaled $80,000. A $16,000 loss from the sale of property and equipment occurred. Interest income was $7,800. Interest expense was $18,000. Supplies expense was $300,000. Rent expense for the store was $30,000. Wages expense was $40,000. Other operating expenses totaled $70,000. Unearned revenue was 4,900. What is the amount of Lantz’s income before income taxes?...

Dover Corporation has provided the following information for the year just ended: • Cash sales totaled...

Dover Corporation has provided the following information for the year just ended: • Cash sales totaled $125,000 • Credit sales totaled $279,000 • Cash collections from customers for services that have not been provided yet totaled $38,000 • There was an $11,000 gain from the sale of property and equipment • Interest income totaled $8,000 How much did net income increase due to these items?

Mace Company has provided the following information for the year just ended: Cash sales totaled $130,000, Credit sales totaled $219,000, Cash collections from customers for services that have not been provided yet totaled $12,000.

Mace Company has provided the following information for the year just ended: Cash sales totaled $130,000, Credit sales totaled $219,000, Cash collections from customers for services that have not been provided yet totaled $12,000. There was a $3,000 gain from the sale of property and equipment. Interest expense totaled $9,500. How much did net income increase due to these items?A.) $339,500B.) $353,300C.) $350,800D.) $342,500

Q1. Best Value Company has provided the following information: Current Annual Sales (Credit Sales): P3,600,000 Terms:...

Q1. Best Value Company has provided the following information: Current Annual Sales (Credit Sales): P3,600,000 Terms: 45 Days Interest Rate or Cost of Finance: 15% p.a. Potential New Policy: Analyst 1 has suggested to offer a discount to customers with this policy: 1/15 net 45. Analyst 1 expects that 50% of customers will take advantage of the discount. Analyst 2 however says that customers will not be enticed and for 50% of customers to take advantage of the discount, the...

Asplund Corporation has provided the following information:

Asplund Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.25 Direct labor $ 2.90 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 18,000 Sales commissions $ 1.50 Variable administrative expense $ 0.45 Fixed selling and administrative expense $ 7,500 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units? b. For financial reporting purposes,...

During Burns Company's first year of operations, credit sales totaled $168,000 and collections on credit sales...

During Burns Company's first year of operations, credit sales totaled $168,000 and collections on credit sales totaled $119,000. Burns estimates that bad debt losses will be 1.0% of credit sales. By year-end, Burns had written off $440 of specific accounts as uncollectible. Required: 1. Please help me prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. 2. I have too Show the year-end balance sheet presentation for accounts receivable. Thanks!

Orion Corporation made cash sales during May which totaled $19,635, including the 5% sales tax. These...

Orion Corporation made cash sales during May which totaled $19,635, including the 5% sales tax. These sales remain unrecorded, and no sales tax has been remitted to the state. Journalize Orion's sales for May

Classifying Cash Flows The company provided the following information. (a) Cash sales for the year were...

Classifying Cash Flows The company provided the following information. (a) Cash sales for the year were $50,000; sales on account totaled $60,000. (b) Cost of goods sold was $55,000. (c) All inventory is purchased on account. (d) Depreciation on building was $31,000 for the year. (e) Depreciation on equipment was $2,000. (f) Cash collections of accounts receivable were $38,000. (g) Cash payments on accounts payable for inventory equaled $39,000. (h) Rent expense paid in cash was $11,000. (i) 20,000 shares...

Candy Company manufactures candy and has the following information for june 2010. Sales totaled $4,125,000.00 and gives...

Candy Company manufactures candy and has the following information for june 2010. Sales totaled $4,125,000.00 and gives a 4% commission to its sales staff charged as a selling expense. A total of 100,000 direct labor hours were worked for the month with a rate of $6.00 per hour. Raw materials purchases $ 500,000.00 Salaries of Sales Staff 320,000.00 Salary of General Manager 250,000.00 Utilities Expense - Factory 190,000.00 Rent for factory 170,000.00 Administrative Salaries 140,000.00 Rent for Sales Shop 130,000.00 Indirect...

Question