The Following Data Relate to Gorr Company for the Year

question 16

Multiple Choice

The following data relate to Gorr Company for the year ended December 31, 2012.Gorr Company uses the accrual basis. $$\begin{array} { l r } \text { Sales for cash } & \$ 200,000 \\\text { Sales for credit } & 220,000 \\\text { Cost of inventory sold } & 180,000 \\\text { Collections from customers } & 300,000 \\\text { Purchases of inventory on credit } & 190,000 \\\text { Payment for purchases } & 180,000 \\\text { Selling expenses (accrual basis) } & 50,000 \\\text { Payment for selling expenses } & 60,000\end{array}$$ Which of the following represents income for Gorr Company for the year ended December 31, 2010?

• A)$180,000
• B)$185,000
• C)$190,000
• D)$200,000
• E)None of the answers are correct.

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Definitions:

Supply Chain Intermediaries

Entities or businesses that act as middlemen in the supply chain, facilitating the movement of goods from producers to end consumers.

Retail Partners

Companies or individuals that sell products directly to consumers on behalf of another business or brand.

Distribution Intensity

The level of availability of a product in various retail outlets, ranging from intensive (widely available) to selective or exclusive distribution.

Supercenters

Large retail establishments that combine groceries and general merchandise goods with a variety of services.