Question

Selected data for three companies are given below. All inventory amounts are ending balances and all amounts are in millions. (Click the icon to view the data.) Using the above data, calculate operating income for each company. (Enter amounts in millions as provided to you in the problem statement, SX.) Begin by calculating the operating income for Company A. i Data Table Company A Company A Cash $ $ 12 $ Gross Profit Selling and Administrative Expenses: Net Sales Revenue Finished Goods Inventory Cost of Goods Sold Company B 6 Wages Expense 48 Equipment Accounts Receivable Service Revenue Cash Rent Expense Company C Administrative Expenses Cash Nel Sales Revenue Selling Expenses Merchandise Inventory Equipment Accounts Receivable Cost of Goods Sold Total Selling and Administrative Expenses Selling Expenses Operating Income Equipment Work-in-Process Inventory Accounts Receivable Cost of Goods Manufactured Administrative Expenses Raw Materials Inventory Print Done

Answer 1

Being Calculationg operating income for Company A					Being Calculationg operating income for Company B
	Company A					Company B
	Net Sales		48			Service Revenue		65
Less	Cost of good sold		23		Less	Wages		12
	Gross Profit		25			Gross Profit		53
	Selling & Administattive Exp					Selling & Administattive Exp
	Selling Expenses		4			Rent Expenses		12
	Administrative Expenses		7
	Total Selling & Admin expenses		11			Total Selling & Admin expenses		12
	Opertating Income		14			Opertating Income		41
Being Calculationg operating income for Company C
	Company C
	Net Sales		75
Less	Cost of good sold		25
	Gross Profit		50
	Selling & Administattive Exp
	Selling Expenses		8
	Administrative Expenses		4
	Total Selling & Admin expenses		12
	Opertating Income		38