The Following Data Include All the Elements from Cambridge Company's

question 37

Multiple Choice

The following data include all the elements from Cambridge Company's income statement: $$\begin{array} { l r } \text { Administrative Expense } & \$ 872 \\\text { Cost of Goods Sold } & 3,627 \\\text { Gain on Sale of Securities } & 623 \\\text { Income Tax Expense } & 1,234 \\\text { Loss on Discontinued Operations } & 1,229 \\\text { Loss on Disposal of Equipment } & 237 \\\text { Revenue } & 8,766 \\\text { Selling Expense } & 1,425\end{array}$$ What is the amount of operating income for Cambridge Company?

• A) $2,842
• B) $5,139
• C) $3,228
• D) $3,465

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Definitions:

Personal Selling

A direct marketing approach where individual salespeople reach out to potential customers through face-to-face meetings, calls, or personalized messages.

Trade Sales Promotion

Marketing activities and incentives aimed at intermediaries such as wholesalers and retailers to encourage the stocking and promotion of a company’s products.

Retailers

Businesses that sell goods or services to consumers for personal or household use, acting as a final link between producers and consumers.

Allowance

A fixed amount of money given regularly, typically to a child by their parents, for personal spending or to cover specific personal expenses.