Question

Using the income statement shown below, answer the following questions:

Which operating expense was the most costly?

Mountain Air Bikes

Income Statement for the Year Ended

December 31, 2---

 Net Sales $202,736 Cost of Goods Sold $124,375 Gross Profit $? Operating Expenses $28,022 Salaries $14,211 Rent $5,214 Utilities $3,422 Advertising $? Total Operating Expenses $?\begin{array}{lcc} \textbf { Net Sales } && \$ 202,736 \\ \text { Cost of Goods Sold } && \underline{\$124,375} \\ \textbf { Gross Profit } && \$\quad ? \\ \textbf { Operating Expenses } && \$ 28,022 \\ \text { Salaries } && \$ 14,211 \\ \text { Rent } && \$ 5,214 \\ \text { Utilities } && \underline{\$ 3,422} \\ \textbf { Advertising } && \$\quad ? \\ \textbf { Total Operating Expenses } && \$\quad ? \end{array}

Solution

Verified

The most costly operating expense was salaries.

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

More related questions