The Following Data Relate to Rocket Company for the Year

question 86

Multiple Choice

The following data relate to Rocket Company for the year ended December 31, 2012.Rocket Company uses the cash basis. $$\begin{array} { l r } \text { Sales on credit } & \$ 180,000 \\\text { Cost of inventory sold on credit } & 130,000 \\\text { Collections from customers } & 170,000 \\\text { Purchase of inventory on credit } & 140,000 \\\text { Payment for purchases } & 150,000 \\\text { Selling expenses (accrual basis) } & 20,000 \\\text { Payment for selling expenses } & 25,000\end{array}$$ Which of the following amounts represents income for Rocket Company for the year ended December 31, 2012?

• A)$30,000
• B)$5,000 loss
• C)$40,000
• D)$45,000
• E)$50,000

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Definitions:

Beneficial Changes

Alterations in an organism or environment that lead to positive outcomes, such as increased fitness, survival, or adaptation.

Allopatric Speciation

The formation of new species in populations that are geographically isolated from one another.

Environmental Factors

External influences from the surrounding environment that can affect the growth, development, and survival of organisms.

Parental Stock

The breeding animals or plants used in agriculture or aquaculture, from which offspring are produced for specific qualities or production purposes.