The Following Data Relate to Rocket Company for the Year

question 115

Multiple Choice

The following data relate to Rocket Company for the year ended December 31,2012.Rocket Company uses the cash basis. $\begin{array}{llcc} \text {Sales on credit } &\$180,000 \\ \text {Cost of inventory sold on credit } &130,000\\ \text { Collections from customers } &1700,000\\ \text { Purchase of inventory on credit } &140,000\\ \text { Payment for purchases } &150,000\\ \text { Selling expenses (accrual basis) } &20,000\\ \text { Payment for selling expenses } &25,0000\end{array}$
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:

Total Industry Sales

The aggregate revenue generated by all companies operating within a specific industry over a given time period.

Ben & Jerry's Sales

Refers to the revenue generated from the sale of Ben & Jerry's ice cream products, a subsidiary of Unilever known for its unique flavors and social activism.

Quantitative Value

A measurable, numerical value associated with data, which can be analyzed statistically for trends, patterns, or to gauge performance.

Marketing Activity

Any action or task carried out by a company to promote and sell its products or services, including advertising, sales, distribution, and market research.