Using the Information Below, Calculate Net Income for the Period

question 216

Multiple Choice

Using the information below, calculate net income for the period:

$\begin{array}{lr}\text { Sales revenues for the period }&\$1,304,000\\\text {Operating expenses for the period }&239,000\\\text {Finished Goods Inventory, January 1 }&36,000\\\text {Finished Goods Inventory, December 31 }&41,000\\\text {Cost of goods manufactured for the period }&540,000\\\end{array}$

• A) $774,000.
• B) $769,000.
• C) $530,000.
• D) $535,000.
• E) $448,000.

---

Definitions:

Bad Debts

Accounts receivable that are considered uncollectible and are written off as a loss.

General Operating Expenses

These are the day-to-day expenses necessary for the management and administration of a business, such as rent, utilities, and payroll.

Collections

The process of pursuing payment on debts owed by individuals or businesses, typically involving accounts receivable.

Credit Sales

Transactions where the buyer purchases goods or services on credit, agreeing to pay the seller at a later date, thus generating accounts receivable for the seller.