Reference:
the Following Data (In Thousands of Dollars) Have

question 9

Multiple Choice

Reference:
The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the just completed year. $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 990 \\\hline \text { Raw materials inventory, beginning } & \$ 40 \\\hline \text { Raw materials inventory, ending } & \$ 70 \\\hline \text { Purchases of raw materials } & \$ 120 \\\hline \text { Direct labour } & \$ 200 \\\hline \text { Manufacturing overhead } & \$ 230 \\\hline \text { Administrative expenses } & \$ 150 \\\hline \text { Selling expenses } & \$ 140 \\\hline \text { Work in process inventory, beginning } & \$ 70 \\\hline \text { Work in process inventory, ending } & \$ 50 \\\hline \text { Finished goods inventory, beginning } & \$ 120 \\\hline \text { Finished goods inventory, ending } & \$ 160 \\\hline\end{array}$$
-The net income for the year (in thousands of dollars) was:

• A)$490.
• B)$200.
• C)$150.
• D)$250.

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Definitions:

Distribution

The process of delivering products or services from the producer to the intended users.

Bonus

Additional compensation given to employees as a reward for their performance, often beyond their regular earnings.

Capital Balances

Refers to the amount of money that the owners of a company have invested in the business or retained from profits over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.