As shown in the picture, use the information obtained from the Trial Balance of Andros Dry Goods for the month ended December 31, 2019 to prepare a multi-step income statement and answer the questions that follow.

Required:

Enter your answer for: Operating Income 

(Enter your answer as follows: $X,XXX.XX)

 

Transcribed Image Text:

Cash $30,000 Account receivable 16,000 Prepaid insurance 12,000 Purchases 20,000 Freight in 500 Merchandise inventory (Dec. 1, 2019) 6,000 General and Administrative Expenses 8,000 Gross Sales 60,000 Sales returns & allowances 10,000 Selling expenses Interest paid on loan taken 7,000 800 Interest reccived from investments 1600 Note: On physical stock taking at the end of the month it was found that inventory of dry goods on hand amounted to $6,500. Cash $30,000 Account receivable 16,000 Prepaid insurance 12,000 Purchases 20,000 Freight in 500 Merchandise inventory (Dec. 1, 2019) 6,000 General and Administrative Expenses 8,000 Gross Sales 60,000 Sales returns & allowances 10,000 Selling expenses Interest paid on loan taken 7,000 800 Interest reccived from investments 1600 Note: On physical stock taking at the end of the month it was found that inventory of dry goods on hand amounted to $6,500.