Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company has provided the following information: Sales Revenue $ 571 comma 000 Purchases (excluding Freight In) 302 comma 000 Selling and Administrative Expenses 69 comma 000 Freight In 14 comma 000 Beginning Merchandise Inventory 44 comma 000 Ending Merchandise Inventory 43 comma 000 What is the operating income for the year?

the operating income for the year is $185,000

Explanation:

Artisan Inspiration, Inc. Income Statement

Sales                                                                             571,000

Less Cost of Goods Sold :

Opening Stock                                       44,000

Add Purchases                302,000

Add Freight In                     14,000       316,000

Available                                               360,000

Less Closing Stock                               (43,000)         (317,000)

Gross Profit                                                                   254,000

Less Expenses :

Selling and Administrative Expenses                          (69,000)

Net Income                                                                    185,000

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