Answer:
Net operating income= $3,000
Explanation:
Giving the following information:
NBC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $14,000 in operating expenses, and $2,000 in other income.
We need to use the following structure:
Revenues (+)
Operating Revenue
Non-Operating Revenue
Total
Expenses (-)
Primary Activity Expenses
Secondary Activity Expenses
Total
=Net income/loss
In this exercise:
Sales= $32,000
Other income= $2,000
Total= 32,000
Cost of merchandise= $15,000
Operating expense= $14,000
Total= (29,000)
Net operating income= $3,000
