The Following Data Relate to Swift Company for the Year

question 61

Multiple Choice

The following data relate to Swift Company for the year ended December 31, 2012.Swift Company uses the accrual basis. $$\begin{array}{l}\begin{array} {lll } \text {Sales on credit}&\$250,000\\\text {Cost of inventory sold on credit}&170,000\\\text {Collections from customers}&220,000\\\text {Purchase of inventory on credit}&150,000\\\text {Payment for purchases}&140,000\\\text {Selling expenses (accrual basis) }&40,000\\\text {Payment for selling expenses}&45,000\\\end{array}\end{array}$$ Which of the following amounts represents income for Swift Company for the year ended December 31, 2012?

• A)$60,000
• B)$50,000
• C)$40,000
• D)$35,000
• E)$30,000

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