The Filzinger Corporation’s December 31, 2018 year-end trial balance contained t

Question

The Filzinger Corporation’s December 31, 2018 year-end trial balance contained the following income statement items:

Account Title Debits Credits Sales revenue 6,950,000 Interest revenue 80,000 Gain on sale of investments 62,000 Cost of goods sold 3,700,000 Selling expenses 550,000 General and administrative expenses 998,000 Interest expense 40,000 Research and development expense 800,000 Income tax expense 155,000 Required: Calculate the company’s operating income for the year using a single-step income statement format.

Explanation / Answer

Sales Revenue 6950000

Interest Revenue 80000

Gain on sale of investment 62000

Total 7092000

Expenses:

Cost of goods sold 3700000

Selling expenses 550000

General and admistrative expenses 998000

Research and development expenses 800000

Interest expenses 40000 6088000

Net Income 1004000

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