Calculate Income from Operations for Jonas Company Based on the Following

question 202

Multiple Choice

Calculate income from operations for Jonas Company based on the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 764,000 \\\hline \text { Operating expenses } & 52,500 \\\hline \text { Cost of merchandise sold } & 538,000 \\\hline\end{array}$$

• A) $485,500
• B) $711,500
• C) $173,500
• D) $226,000

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Definitions:

Jointly

Involves two or more parties working together or sharing a specified obligation or liability.

Severally Liable

When individuals or entities are individually responsible for their own proportion of liability in a debt or claim, instead of being collectively responsible.

Principal Relationship

A legal relationship between two parties in which one, the agent, is authorized to act on behalf of the other, the principal, in business transactions.

Unsecured Credit

A form of credit that is not backed by collateral, making it riskier for lenders since repayment relies solely on the borrower's creditworthiness and promise to pay.