Question

Question 3 (1 point)

Accounts Payable Cost of Goods Sold Gain on Sale of Equipment General and Admin Expense Loss from Discontinued Ope Salaries Payable Tax Expense $45,000 230,000 15,000 160,000 10,500 20,000 60,000

Blanton is preparing their multi-step income statement and have downloaded their income statement accounts. Two accounts were downloaded incorrectly and do not belong on the income statement (HINT: you have to identify the wrong accounts). These two replace the wrong accounts shown above:

Selling Expenses 35,000

Sales Revenue 600,000

What is Blanton Co's operating income for the period?

Enter your response as a whole number, no commas and no dollar sign.

Answer 1

	Sales revenue	600000
Add:	Gain on Sale of equipment	15000
	Total Revenues	615000
Less:	Cost of goods sold	230000
	Gross Profit	385000
Less:	Selling expenses	35000
	Income before discountinued operation	350000
Less:	Loss from discountinued operation	10500
	Income before tax	339500
Less:	Tax expenses	60000
	Net Operating income	279500