3. NBC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $14,000 in operating expenses, and $2,000 in other income. What is NBC Company's operating profit

Net operating income= $3,000

Explanation:

Giving the following information:

NBC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $14,000 in operating expenses, and $2,000 in other income.

We need to use the following structure:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

=Net income/loss

In this exercise:

Sales= $32,000

Other income= $2,000

Total= 32,000

Cost of merchandise= $15,000

Operating expense= $14,000

Total= (29,000)

Net operating income= $3,000

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