Answer:
The operating income for the year is $190,000
Explanation:
The Computation of the operating income is shown below:
= Sales revenue - cost of good sold - Selling and Administrative Expenses
where,
Sales revenue is $577,000
The cost of good sold = Beginning Merchandise Inventory + Purchases (excluding Freight In) + Freight In - Ending Merchandise Inventory
= $45,000 + $300,000 + $15,000 - $42,000
= $318,000
And, the Selling and Administrative Expense is $69,000
Now put these values to the above formula
So, the value would equal to
= $577,000 - $318,000 - $69,000
= $190,000
