Question

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:

Account Title	Debits			Credits
Sales revenue				$	13,400,000
Interest revenue					59,000
Loss on sale of investments	$	109,000
Cost of goods sold		6,290,000
Selling expenses		629,000
General and administrative expenses		1,610,000
Interest expense		49,000
Research and development expense		1,290,000
Income tax expense		909,000

Required:
Calculate the company’s operating income for the year.

Total operating revenue Less operating expenses: Operating income

Answer 1

Sales revenue	13400000
Total operating revenue		13400000
Less operating expenses:
Cost of goods sold	6290000
Selling expenses	629000
General and administrative expenses	1610000
Research and development expense	1290000
		9819000
Operating income		3581000