Question

Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash collections from customers for services yet to be provided totaled $48,000. An $10,000 gain from the sale of property and equipment occurred. Interest income totaled $8,700. How much of these items were included in operating income

Answer 1

Answer:

$434,000

Explanation:

The total amount that should be included in the operating income as follows:

1. Cash sales $135,000

2. Credit sales $289,000

3. Gain from the sale of property and the equipment $10,000

Operating income $434,000

hence, the $434,000 should be included in the operating income