Asked by
Nikhil Gupta
on Dec 16, 2024
Verified
During August 2016 Shelby's Supply Store generated revenues of $65000. The company's expenses were as follows: cost of goods sold of $33000 and operating expenses of $7000. The company also had rent revenue of $2000 and a loss on the sale of a delivery truck of $3000. Shelby's operating income for the month of August 2016 is
A) $25000.
B) $27000.
C) $24000.
D) $32000.
Operating Income
Income earned from a firm's core business operations, excluding deductions of interest and taxes.
Operating Expenses
The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.
Rent Revenue
Income earned from leasing out properties or spaces to tenants.
- Gain insight into the impact of inventory transactions on the financial statements: the Income Statement and Balance Sheet.
Verified Answer
MS
Learning Objectives
- Gain insight into the impact of inventory transactions on the financial statements: the Income Statement and Balance Sheet.