Walton Manufacturing Company gathered the following data for the month.

Question

Cost of goods sold 35,000

Sales89,000

Selling expenses 16,000

Administration expenses 21,000

How much net operating income will be reported for the period? (4 marks)

Answer 1

Net Operating Income = Sales - Cost of Goods Sold - Selling Expenses - Administration Expenses
Net Operating Income = 89,000 - 35,000 - 16,000 - 21,000
Net Operating Income = $17,000

Therefore, the net operating income reported for the period will be $17,000.