Question

Exercise 4-1 (Algo) Operating versus nonoperating income [LO4-1] Pandora Corporation operates several factories In the Midwest that manufacture consumer electronics. The December 31, 2021, year- end trial balance contained the following income statement items Credits Debits Account Tiele $13.200,000 5१,000 Salen xevenae Interest revenue Lonn on ale of investment 107.000 6,270,000 627,000 1,590,000 Cost of goeds neld Sell ing expenser General and administrative expenses Interert expense Research and 4evel opasene expenre Inceme tax expense 47,000 1,270,000 907,000 Required: Calculate the company's operating Income for the year Total operating revenue Less operating epenses 0 Operating income

Answer 1

Computation of Operating Income $ $ $ 13,200,000 6,270,000 6,930,000 Sales Revenue Cost of goods sold Gross Profit Operating Expenses: Selling expenses $ General and administrative Expense | $ Research and development Expense | $ Total Operating Expenses Operating Income 627,000 1,590,000 1,270,000 $ $ 3,487,000 3,443,000