Lantz Company has provided the following information: Cash sales totaled $210,00

Question

Lantz Company has provided the following information: Cash sales totaled $210,000 Credit sales totaled $481,000. Cash collections from customers for services yet to be provided totaled $81,000. A $17,000 loss from the sale of property and equipment occurred Interest income was $7,900. Interest expense was $18,100. Cost of goods sold was $310,000. Rent expense was $31,000. Salaries expense was $41,000 Other operating expenses totaled $71,000. Unearned revenue was $3,900 How much was Lantz's operating income? O $210,800 O $238,00o O $319,000 O $227,800

Explanation / Answer

B. $238,000

Operating revenues = $210,000 + $481,000 = $691,000

Operating expenses = $310,000 + $31,000 + $41,000 + $71,000 = $453,000

Operating income = $691,000 - $453,000 = $238,000

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